US adds 'rebel' oil firm Agoco to Libya sanctions list

London (Platts)--23Mar2011/815 am EDT/1215 GMT

The United States on Tuesday added 14 companies owned by Libya's National Oil Corporation to its sanctions list, including the Benghazi-headquartered Arabian Gulf Oil Company which has broken away from NOC and allied itself with the rebels fighting the forces of Libyan leader Moammar Qadhafi.

Agoco has been added to the US sanctions list despite the United Nations having recognized the rebels' National Transitional Council, which late last week established a separate oil authority led by Agoco to oversee activities in areas under rebel control.

Before the current crisis, Agoco's area of operations accounted for roughly 40% of Libyan output of around 1.6 million b/d. Agoco also operates an oil refinery and oil terminal at Tobruk.

Agoco has been offering Sarir crude directly to European buyers, market sources said earlier this week, although they added that these offers had been declined because of the complicated situation in Libya.

"I think Arabian Gulf Oil is putting oil into the market as they want money to be returned to the Libyan people. But how can you take crude from [a] company which is not registered as your counterparty? I would not take crude from third-party hands," one source said.

"Agoco tried to offer me [Sarir] crude, but we are not taking any oil from them because the whole situation is so complicated in Libya at the moment," another said.

As well as Agoco, the US Treasury placed on its sanctions list the following firms owned by NOC: Azzawiya Oil Refining Company; Brega Petroleum Marketing Company; Harouge Oil Operations; Jamahiriya Oil Well Fluids And Equipment; Mediterranean Oil Services Company; Mediterranean Oil Services; National Oil Fields and Terminals Catering Company; North African Geophysical Exploration Company; National Oil Wells Drilling and Workover Company; Ras Lanuf Oil And Gas Processing Company; Sirte Oil Company for Production Manufacturing of Oil and Gas; Zueitina Oil Company; Waha Oil Company.

Washington had already added NOC to its sanctions list on March 15.

--Margaret McQuaile, margaret_mcquaile@platts.com

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