The Chairman of the Management Committee of the Arabian Gulf Oil Company, Salah Al-Qatrani, said that the debts of the company’s obligations exceeded 1 billion dinars, as a result of the failure to adopt budgets and sufficient funds for operation, production, maintenance and development of the fields.
He added that the company’s critical financial situation « crossed all the red lines, blurred all its activities and actions, affected its credibility and dealings with others, and failed to comply with its obligations ».
This took place during the meeting of the General Assembly of the Arabian Gulf Oil Company, chaired by the engineer Mustafa Sanalla, in the presence of the members of the Oil Corporation: Abu Qasim Shenqir, Muhammad Amari, Jadallah Al-Awakli, Salah Al-Qatrani, Chairman of the Management Committee of the company, and the members of the Management Committee of the company, Abubakar Ben Amer, Faraj Ahtiba, Faraj Al-Mashay, Abdulmottaleb Adam.
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The meeting reviewed the company’s annual activity and contract area 91 during 2021, its targets and proposed 2022 budget, and plans and programmes prepared by the company; The aim is to increase production rates and oil and gas reserves, according to a statement published by the Oil Corporation Facebook page.
Achievements of the Arabian Gulf Oil Company during 2021
In his speech, Al Qatarani also outlined a number of the company’s achievements in spite of the difficulties, including nine reservoir and laboratory studies, which resulted in the drilling of several development wells, which increased the company’s daily production rate of oil, with about 91 million oil produced on an average daily production of 273,000 barrels. The company’s production exceeded 300,000 barrels in some periods of the year, but he realized that electricity problems and the shortage of spare parts did not enable the company to maintain these rates..
He declared that85 wells had been placed on production and several maintenance and engineering projects had been completed. The project for the exploitation of Masala and Sarir gas fields had reached 94 per cent, as well as the development of some discovered fields, the development of financial and administrative systems and the readiness to start using smart field techniques.
Mustafa Sanalla sets a bundle of recommendations
In his speech, National Oil Corporation President Mustafa Moulalla put forward a bunch of recommendations, highlighting the need to develop a comprehensive plan and strategic planning for the company in terms of reserves, productive reserves, production, increasing production rates, ensuring that the company’s targets are achieved for the current year, and examining all options for gas development from Hamada to fill the projected gas deficit for domestic consumption and maintain Libya’s share in the global gas market.
Development of a strategic planning department
He also recommended the creation of a Department of Strategic Planning and Business Development, which would arrange opportunities and develop optimal development and research strategies for funding them, as well as rely on technology to establish a control system for all operations in various fields in order to ensure accurate monitoring of a mechanism.
He urged the Gulf Company Management Committee to cooperate with national companies such as Jowfe Oil technologyand NOFCAT and to conduct a debt certification to ensure timely payment of invoices. He also explained that, with the new Oil Law in force, the working mechanism required the Company’s management to identify integrated expenditure reports and deliver them at a specified time to the management of the enterprise, in order to avoid the existence of suspensions that prevented timely closing budgets.
He also noted the importance of the Gulf Company’s addressing the study of non-traditional fields, the establishment of a department to conduct reservoir studies and settle them, as well as the development of solutions that would help to end the company’s electricity problem.
Taken from National Oil Corporation Facebook Page