NOC and Libyan Foreign Bank Discuss Infrastructure Project Financing

The Chairman of the National Oil Corporation (NOC), Masoud Suleiman, met with the Chairman of the Libyan Foreign Bank (LFB), Mohamed Ali, to discuss prospects for cooperation and ways to support the sector’s strategic projects.

The meeting focused on financing mechanisms for several projects proposed by the NOC. These include infrastructure development and increased storage capacity, as well as projects aimed at enhancing operational efficiency and supporting the NOC’s plans to boost production rates in support of the national economy.

The move by the NOC is to enable it to obtain some financing outside the complex and slow state budget.

A natural fit for a deal
There are a rationale and a natural fit in the LFB financing NOC projects, as all the NOC’s oil and gas export revenues are received in its LFB account/s, before they are transferred to the Central Bank of Libya.

It is, however, unclear if the decision by the LFB will be a finance/credit or a political decision. It is also unclear if the financing will be provided on an Islamic Sharia Murabaha basis or on a purely interest-charging basis.