Administrative Control Authority urges govt to halt US Hess, France's Total deal

Administrative Control Authority urges govt to halt US Hess, France's Total deal

January 12, 2022 - 11:52
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Written By: SafaAlharathy

The Administrative Control Authority has urged the government to halt all procedures related to the selling of the American holding company Hess stake to French Total, pending the follow-up and evaluation of the file in full.

In a letter addressed to the government, the Administrative Authority attributed its request to the extensive damages that such a deal may cause to the Libyan state.

"The Administrative Authority followed up and evaluated the file of the US holding company, Hess, waiving its right to the Waha concession contracts, valued at $300 million, in favor of Total and ConocoPhillips, according to memos and correspondence submitted by the Ministry of Oil and Gas, the letter read.

The report confirmed the existence of various technical, financial, and legal observations that marred the procedures for approving the sale of the stake, from which emerged Cabinet Resolution No. 552 for the year 2021.

The Administrative Authority also reported several procedural observations on Resolution 552 and emphasized in its recommendations the necessity of acquiring the stake for the benefit of the Libyan state due to the investment returns it represents.