The Kharafi Group has obtained a judicial approval to freeze rights associated with assets of the Libyan National Oil Corporation in France. This development is part of an ongoing legal dispute between the Kuwaiti conglomerate and the Libyan government that has spanned nearly 15 years. According to a report by Africa Intelligence, the Libyan National Oil Corporation's assets in France are now exposed to claims from creditors who rely on judicial rulings issued against the Libyan state.
A French court ruled in 2022 that the Libyan National Oil Corporation is considered an extension of the Libyan state. This ruling has opened the door for creditors to take action to freeze some of the corporation's assets in France. The French courts reaffirmed this stance in a decision issued on September 10, within the case pursued by the Kharafi Group against the Libyan state. This allowed the group to continue procedures to enforce its claims.
In July, the Kharafi Group obtained approval to freeze rights belonging to the Libyan National Oil Corporation in a joint project with TotalEnergies. The group also took steps to freeze financial receivables. Previously, the group sought to target frozen assets of the Libyan Investment Authority, including the "Fanak" building in Paris's Terne district. However, a French court ruled in February that freezing these assets required prior approval from the French Treasury.
With this path no longer viable, the Kharafi Group turned to the assets of the Libyan National Oil Corporation in France, seeking to recover approximately $844 million. The corporation has contested the freezing decision, citing procedural irregularities. However, the enforcement judge rejected these arguments, citing what he considered to be a lack of functional independence of the corporation from the Libyan state.
This development comes within the context of a long-standing legal dispute between the Kharafi Group and the Libyan side. The procedures related to enforcing judgments and financial claims before the French judiciary are ongoing. The Kharafi Group's efforts to enforce its claims against the Libyan state have been ongoing for nearly 15 years.
The Libyan National Oil Corporation's assets in France have become vulnerable to creditor claims due to the court's ruling that it is an extension of the Libyan state. This has significant implications for the corporation's operations and assets in France. The French courts' decisions have consistently supported the Kharafi Group's claims, allowing it to pursue the freezing of Libyan assets.
The dispute between the Kharafi Group and the Libyan government has significant financial implications, with the group seeking to recover $844 million. The ongoing legal proceedings will likely have far-reaching consequences for the Libyan National Oil Corporation and its operations in France. The case highlights the complexities of international disputes and the challenges of enforcing judgments across borders.
Key points
- The Kharafi Group has obtained a judicial approval to freeze rights associated with assets of the Libyan National Oil Corporation in France.
- The Libyan National Oil Corporation's assets in France have become vulnerable to creditor claims due to the court's ruling that it is an extension of the Libyan state.
- The dispute between the Kharafi Group and the Libyan government has significant financial implications, with the group seeking to recover $844 million.
