Decision 46/2023: Committee Formation on Fuel Payment and NOC Financing Mechanisms

Prime Minister Al-Dabaiba established a seven-member committee to review Libya's fuel payment mechanisms and financing systems for the National Oil Corporation (NOC). The committee is tasked with identifying internationally recognized best practices to ensure transparency in public finance accounting and efficient fuel supply flow.

This decision signals potential reform of Libya's opaque fuel subsidy and NOC financing arrangements, which have historically created cash flow bottlenecks and payment delays throughout the petroleum supply chain. Foreign oil service companies, fuel traders, and logistics operators should monitor this committee's recommendations closely, as changes to payment mechanisms could affect contract terms, credit risk, and working capital requirements. The emphasis on 'internationally recognized practices' may indicate movement toward more conventional financing structures, potentially reducing counterparty risk.