Oil Tensions Rise as Libyan Government suspends State Corporation’s Boss

The head of Libya’s National Oil Corporation has been suspended, the country’s oil minister said, in a move that raises tensions and potentially threatens output stability in a sector that serves as the OPEC nation’s financial lifeline.

Mustafa Sanalla, who’s served as the NOC’s chairman for seven years, traveled abroad on a business trip without getting the necessary approval, according to a letter from the oil minister, detailing the claims and terming it a “violation” of ministry policy.

Oil Minister Mohamed Oun confirmed the contents of the letter in a phone call. NOC officials , including Sanalla, either weren’t immediately available or couldn’t be reached for comment.

Tension between Oun and Sanalla have been mounting in recent weeks, especially after the minister requested that the government dismiss the NOC chief and reshuffle its board, arguing the way it was set up violated Libyan law.

Prime Minister Abdul Hamid Dheibah said he hadn’t studied the request yet, but a change at the NOC was needed, though maybe not in the form sought by the oil minister.

Bloomberg/Hauwa Abu