By Andre Michael Eggelletion
Now that Col. Muammar Qaddafi, is dead, how will Libya’s oil policy change? Indeed, preparations have been underway for months in Washington that will guide post-Qaddafi US/Libya relations during Libya’s political transition.
What will happen to US oil sanctions?
On February 25, 2011, persons and groups in the United States were blocked from petroleum transactions with the Qaddafi regime by President Obama's broad sanctions order "Blocking Property and Prohibiting Certain Transactions Related to Libya," E.O. 13566. By April 26, 2011, anticipating permanence in Qaddafi’s departure, the U.S. Treasury Office of Foreign Assets Control (OFAC) announced how persons and groups in the United States would eventually license petroleum transactions.
What companies may be engaged?
These new licenses would only be granted for transactions with companies operating under the auspices of the anti-Gaddafi interim governing group in eastern Libya; the Transitional National Council of Libya (TNC). Those companies are: Qatar Petroleum, Arab Gulf Oil Company (AGOCO), or the Vitol group of companies related to oil, gas, or petroleum products exported from Libya under the auspices of the (TNC). None of the pro-Qaddafi groups, companies, or governmental components in Libya can receive any benefit from transactions licensed by (OFAC).
Link to OFAC official post-Qaddafi policy statement:
Also on April 26th, OFAC issued a Statement of Licensing Policy establishing a favorable regime through which U.S. persons can request authorization, on a case-by-case basis, to engage in the following dealings:
1) The purchase from the TNC, the exportation from Libya, and/or the importation into the United States of oil, gas, and petroleum products produced in areas of Libya under the control of the TNC
2) The trading, importation, and exportation of, and other dealing in or related to, oil, gas, and petroleum products produced in areas of Libya under the control of the TNC
3) All transactions, including but not limited to investment, involving the production and transport of oil, gas, and petroleum products produced in areas of Libya under the control of the TNC
All licenses are subject to the provision that the Government of Libya, its agencies, instrumentalities, and controlled entities – with the exception of entities operating in areas controlled by the TNC and under the auspices of the TNC – do not receive any benefit from such activities or transactions.
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