NOC Mulls Benghazi Branch

The oil producing regions in Libya are looking for more control over the industry activities and the country’s main producing region, Benghazi, has submitted a proposal regarding its jurisdiction rights. Currently state-run NOC is reviewing the proposal for a Benghazi branch.

NOC and the government have seen protests from Benghazi and threats to cut output by workers who are asking for more control there.

NOC in early October issued a resolution to open a branch in Benghazi, where NOC’s largest subsidiary Arabian Gulf Oil Co. (Agoco) was the first to restart production after long time leader Muammar Qaddafi was finally ousted. However employees at NOC’s headquarters in Tripoli are against the move saying the Benghazi branch would have to much power.

“Opening an NOC office in Benghazi will ease Tripoli's load,” Yussef al-Ghariani, an engineer at Jowfe oil services firm, said in a Reuters report. "I'm against reducing output or using oil as pressure, but the situation is bad. People are upset and if there is no solution, things may get worse and output may be affected," he added.

Under the proposal submitted October 4 the branch in Benghazi would include departments in charge of petrochemicals and refining, exploration and production, finance, administration, and human resources. The Benghazi branch would supervise subsidiaries based in the eastern portion of the country like eastern Agoco, Sirte Oil Co., and Ras Lanuf Oil and Gas Processing Co.

If NOC decides to open a branch in Benghazi it has not been decided if it will be a full fledge operation or just a support branch; Tripoli employees are pushing for the later.