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| Version 1 | Version 2 |
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| Glencore oil deal in Libya branded worthless by rival government | Glencore oil deal in Libya branded worthless by rival government |
| (about 2 hours later) | |
| Glencore’s deal to export Libyan oil is not worth the paper it is printed on, the commodities company has been told. | Glencore’s deal to export Libyan oil is not worth the paper it is printed on, the commodities company has been told. |
| The Switzerland-based firm agreed last week to buy up to half of Libya’s oil exports from the western division of the National Oil Company in Tripoli, where an Islamist-backed government is based. | The Switzerland-based firm agreed last week to buy up to half of Libya’s oil exports from the western division of the National Oil Company in Tripoli, where an Islamist-backed government is based. |
| But the internationally recognised government in Benghazi, in eastern Libya, said Glencore had signed a deal with the wrong people. | |
| Nagi Elmagrabi, chairman of the eastern division of the National Oil Company, told Bloomberg that he had written to Glencore asking for an explanation but not yet received a reply. | Nagi Elmagrabi, chairman of the eastern division of the National Oil Company, told Bloomberg that he had written to Glencore asking for an explanation but not yet received a reply. |
| He said that if Glencore had signed a deal with the parallel regime in Tripoli, the Benghazi government could physically prevent Glencore tankers from using Libyan ports. | He said that if Glencore had signed a deal with the parallel regime in Tripoli, the Benghazi government could physically prevent Glencore tankers from using Libyan ports. |
| The deal in question envisages Glencore loading and finding buyers for crude oil from the Sarir and Messla fields, exported via Tobruk’s Marsa el-Hariga port in the east. | The deal in question envisages Glencore loading and finding buyers for crude oil from the Sarir and Messla fields, exported via Tobruk’s Marsa el-Hariga port in the east. |
| The eastern government says it does not recognise any agreement signed with Tripoli. | The eastern government says it does not recognise any agreement signed with Tripoli. |
| Finding a way to resolve the impasse could prove particularly lucrative for Glencore, given that Libya’s oil exports have huge potential to increase. | Finding a way to resolve the impasse could prove particularly lucrative for Glencore, given that Libya’s oil exports have huge potential to increase. |
| Libya was pumping about 1.6m barrels of oil a day before the civil war that ended Colonel Muammar Gaddafi’s rule in 2011. | Libya was pumping about 1.6m barrels of oil a day before the civil war that ended Colonel Muammar Gaddafi’s rule in 2011. |
| Production has since slumped to as low as 400,000 barrels a day, although it could be increased if the security situation in Libya improves. | Production has since slumped to as low as 400,000 barrels a day, although it could be increased if the security situation in Libya improves. |
| Glencore regularly invests in countries where security risks and political turmoil have deterred other investors, such as the Democratic Republic of Congo and Colombia. | Glencore regularly invests in countries where security risks and political turmoil have deterred other investors, such as the Democratic Republic of Congo and Colombia. |
| However, the company is in need of new sources of income, after the economic slowdown in China prompted a slump in global commodity prices, ravaging its share price. | However, the company is in need of new sources of income, after the economic slowdown in China prompted a slump in global commodity prices, ravaging its share price. |
| The company floated its shares at £5.30 in 2011 but they have since plunged, closing on Monday at 90.42p. | The company floated its shares at £5.30 in 2011 but they have since plunged, closing on Monday at 90.42p. |
| The firm announced proposals earlier this year to raise £6.6bn in an effort to allay investors’ fears about its £20bn debt pile. The plan includes mine closures, asset sales and a £1.6bn share-placing but has yet to arrest the decline in Glencore’s stock. | The firm announced proposals earlier this year to raise £6.6bn in an effort to allay investors’ fears about its £20bn debt pile. The plan includes mine closures, asset sales and a £1.6bn share-placing but has yet to arrest the decline in Glencore’s stock. |
| Glencore declined to comment on its dealings in Libya. | Glencore declined to comment on its dealings in Libya. |