First Published: 2017-02-21

Russian, Libyan state oil giants sign deal
Two state companies will establish joint working committee to explore cooperation in various fields including exploration, production.
Middle East Online

Libya is attempting to reach production goals to stabilise economy

LONDON - Russia's Rosneft oil giant has paved the way for investment in Libya's oil sector by signing a Cooperation Framework Agreement with the National Oil Corporation of Libya, it was announced Tuesday.

The agreement was signed Monday on the sidelines of London's International Petroleum Week by NOC chairman Mustafa Sanalla and Rosneft chairman Igor Sechin, according to the NOC.

Under the deal, the two state companies will establish a joint working committee to explore possible cooperation in various fields, including exploration and production.

Sanalla last month announced plans to encourage investment by foreign oil companies in an effort to boost Libya's oil production to 2.1 million barrels per day by 2022.

"We need the assistance and investment of major international oil companies to reach our production goals and stabilise our economy," he said.

"This agreement with Russia's largest oil company lays the foundations for us jointly to identify areas of cooperation."

Once a little-known firm, Russia's Rosneft has enjoyed a meteoric rise under President Vladimir Putin.

Headed by the ex-KGB agent's powerful ally Sechin, it has scooped up some of the most prized assets in the Russian oil sector in a series of controversial deals.

Libya currently produces around 600,000 barrels per day (bpd). Before the fall in 2011 of Moamer Kadhafi, it produced 1.6 million bpd.

Since then, the country has been gripped by political and security chaos, unable to exploit or profit fully from its enormous oil resources and pushing the economy to the brink of collapse.

 

Turkey, US agree to ‘work together’ in Syria

Fears of expanding Syrian war could trigger peace deal

Netanyahu warns Iran, brandishes piece of metal

66 feared dead as plane crashes in Iranian mountains

Students in Damascus brave shelling to attend school

Israeli, US officials meet over gas row with Lebanon

Iran's supreme leader says progress needed on justice

Syria Kurds claim striking positions in Turkey

Saudi women to open businesses without male permission

Netanyahu slams 'outrageous' Holocaust remark by Polish PM

Israeli air strikes kill 2 in Gaza

Six suffer breathing difficulties after Turkish shelling in Afrin

Russian mercenaries - a discrete weapon in Syria

Iran protests ban on wrestler who threw bout to avoid Israel

Battle to free Mosul of IS 'intellectual terrorism'

Turkey frees Garman-Turk journalist after one year without charge

Turkey hands life sentences to 3 journalists for Gulen links

Thousands protest corruption in Tel Aviv amid PM indictment call

Prominent jihadist commander killed by rival Syria rebels

300 Russians killed in Syria battle last week

Tillerson, Erdogan have ‘productive, open’ talk

Iran raises rates, freezes accounts in bid to shore up rial

Kremlin says five Russians killed in US Syria strikes

Oman FM in rare visit by Arab official to Jerusalem

Senior IS leader extradited to Iraq from Turkey

Strikes hit another hospital in Syria's Idlib

Churches snub Jerusalem reception over tax dispute with Israeli authorities

Tillerson says US never gave 'heavy arms' to Kurdish YPG

Captured foreign IS suspects claim innocence

Yemeni mother awaits death penalty for spying for UAE

Fuel shortage shuts down Gaza's only power plant

Morocco arrests three suspected IS terrorists

Family of dead environmentalist in Iran threatened

Israel hands life sentence to Palestinian for triple murder

US appeals to Turkey to concentrate on fighting IS

Turkey sets up new 'observation point' in Syria's Idlib

Malaysia rejects criticism over Israeli visit

Tillerson in Ankara to ease Turkey tensions

Egypt arrests ex-presidential candidate

Tillerson: Hezbollah is part of Lebanon's 'political process'

Netanyahu says government ‘stable’ despite police recommending indictment

Corruption accusations facing Netanyahu

Syria denies ‘unacceptable’ chemical weapons use

Nations pledge nearly $25 billion toward Iraq's reconstruction

Egypt remands in custody former anti-corruption chief