Ahmad 
A deal allowing foreign companies to exploit the production of the Hamada al-Hamra gas field, south of the capital Tripoli, has sparked a wide political dispute in Libya.
While the Government of National Unity defended the importance of this deal and its profitability on the oil sector and the national economy, political parties refused to contract with foreign companies in this field.
The controversy arose after the announcement of both the Government of National Unity in Tripoli and the National Oil Corporation (NOC) that they intend to sign an agreement with 3 foreign companies at the end of this month to invest the Hamada al-Hamra oil field, which produces about 8,000 barrels per day.
The High Council of State considered on Wednesday in a statement that this measure is a negligence of public capabilities, a flagrant example of a violation of the national legislation in force, and a clear violation of the provisions of the Libyan Political Agreement in Skhirat, and the relevant international documents.
The High Council of State called on the Government of National Unity and the Oil Corporation to immediately stop the ongoing negotiations to conclude the contract for the development of the aforementioned field, and to consider any effects resulting from those negotiations “as if they were not”, calling for not taking any measures without consulting with the Ministry of Oil and Gas, consulting the opinion of the regulatory bodies, and obtaining the approval of the House of Representatives and the Supreme Council of State.
Earlier, the parliament warned the Government of National Unity against signing an investment agreement in the Hamada al-Hamra field with a consortium of companies entitled to dispose of 40 percent of the field’s production, considering it of a suspicious political nature.
In turn, the Ministry of Oil objected to the agreement, and asked decision-makers to reconsider the negotiations leading to the conclusion of the contract to develop the “Hamada” oil field, work under the directives of the regulatory and judicial authorities and consider the technical opinion provided by the ministry in this regard.
The ministry considered in a statement that this agreement is at the heart of the work of the Ministry of Oil, in addition to the fact that the coalition’s share (40%) of the field is very high and unprecedented compared to the quotas currently in force in Libya, warning that this agreement may push other oil companies to demand the amendment of their contracts and grant them more shares.
The Public Prosecution entered the line of this controversy and demanded the suspension of negotiations leading to the conclusion of the contract for the development of the “Hamada” oil field, until a decisive judicial decision is issued in achieving the regularity of the contracting procedures.
The oil sector is often fueled by conflicts and disagreements between Libyan institutions, up to the point of shutting down oil fields and halting production, due to political division with rival governments in the east and west, and because of a dispute over wealth.