By Benoit Faucon, Summer Said, and Liam Moloney
April 8, 2012
New Government Aims to Shed Light on Petroleum INdustry‘s Interaction with Gadhafi regime
Authorities in the U.S. and Libya are investigating oil giants such as Italy’s Eni SpA and France’s Total SA over their past relations with the fallen Libyan regime, potentially casting a cloud on the companies’ ambitions to expand their foothold in the country with the largest oil reserves in Africa.
Last year, a civil war that toppled Libyan leader Col. Moammar Gadhafi nearly shut down the country’s crude production, stressing global oil markets. But as oil-company operations return to normal, the probes may complicate the oil companies’ business in the country.
The Libyan general prosecutor’s office is investigating “Libyan and foreign operators in Libya” for possible “financial irregularities,” its deputy head, Abdelmajeed Saad, said in an interview.
In a March letter reviewed by The Wall Street Journal, the prosecutor’s office formally asked the head of audit at Libya’s National Oil Co. to supply oil-company documents. The letter mentions oil transactions between NOC and international traders Vitol Group and Glencore International PLC as examples of documents it is seeking. Though the Libyan probe focuses mostly on the Gadhafi era, the letter indicates that the request involving the traders includes the period of the country’s civil war through the present.
The companies investigated also include Eni, the biggest foreign oil player in Libya, and Total, Mr. Saad said…Read more.
- Gadhafi’s crime: Making Libya’s economy work for Libyans (prolecenter.wordpress.com)
- Libya probes oil contracts under Qaddafi (arabnews.com)
- Libya probing oil firms’ contracts under Gaddafi (business.financialpost.com)