Norway’s Yara International, global firm specialized in production of nitrogen fertilizer, has rejected on Monday an offer made by its affiliated firm, Libyan Norwegian Fertilizer Company (LifeCo), to settle the former’s commercial dispute with Libya’s National Oil Corporation (NOC).
The offer suggested that Yara would pay $10 million to the NOC as a part of the Libyan corporation’s accumulated dues, and the latter would, in return, supply LifeCo with gas, according to the executive director of LifeCo.
The NOC has suspended the supply of natural gas to LifeCo, pending settlement of its unpaid debts.
The NOC said that it has attempted to resolve the issue through various consultations to ensure operational continuity at LifeCo plants.
It said that it has held a series of meetings with the management of Yara and LifeCo’s board of directors to discuss arrangements that ensure LifeCo’s foreign partner would assume its financial responsibility towards collective debts.
NOC’s dues amounted to $80 million, besides more €31 million owed to Sirte Oil Company.
NOC said that talks to negotiate a solution have not been successful as a result of “Yara’s refusal to assume repayment responsibility.”
LifeCo was established in 2009 during the Qaddafi regime as a joint venture, with Yara holding 50% stake and both NOC and the Libyan Investment Authority each has a 25% stake.
Yara has already been fined $48 million for bribery of government officials and seen a number of its staff, including Yara’s top legal advisor, found guilty of corruption and sentenced to imprisonment by a Norwegian court.
Investigations into these incidents of illegality, conducted by the Norwegian and Swiss authorities, are being examined in collaboration with the office of the Libyan public prosecutor.
