Libya's NOC chief Farhat Bengdara rejects challenges to his leadership

Libya's new National Oil Corporation (NOC) chairman Farhat Bengdara rejected challenges to his appointment on Tuesday as work at some shuttered fields and ports resumed.

Prime Minister Abdulhamid Al Dbeibah of the Tripoli-based Government of National Unity (GNU) appointed Mr Bengdara last week to replace veteran NOC chief Mustafa Sanalla.

Most of the company's major subsidiaries have publicly acknowledged Mr Bengdara's leadership.

But Mr Sanalla and the eastern-based Parliament rejected the decision.

The Parliament does not recognise the GNU and analysts say the standoff over control of government could become a dispute over NOC that might lead to splits in a company globally recognised as the sole legitimate producer of Libyan oil.

"I am aware that questions have been raised over the legal basis for my appointment," Mr Bengdara said in a statement. "The Libyan government has the right to appoint the chairman and the board of NOC. I was formally appointed as chairman by the Government of National Unity.

"The GNU's decision to appoint me as NOC chairman does not represent any change in the legal position of the NOC, nor in its relationship with the government."

Libya's eastern-based Parliament, which does not recognise the GNU, has said Mr Sanalla remains NOC's legitimate chairman. Mr Sanalla has said he will challenge Mr Bengdara's appointment in court.

Mustafa Sanalla, former chairman of Libya's state oil firm National Oil Corporation, has rejected the appointment of the new chief. Reuters

Zallaf Libya Oil and Gas, Zueitina Oil, Jowfe Oil Technology Co, Akakus Oil Co and Mellitah Oil and Gas Co all released statements on Tuesday welcoming or recognising the new NOC board.

The statements were either on verified social media pages for the companies, or were confirmed to Reuters by company officials.

Arabian Gulf Oil Company (AGOCO) issued a statement welcoming the new board last week.

However, Al Waha Co, which issued an identical statement to that of AGOCO but then deleted it, has not yet put it back up or publicly commented. Sirte Oil Co and Ras Lanuf company have not publicly commented. Reuters said it could not immediately reach their officials.

Analysts say Mr Bengdara is considered close to eastern Libyan commander Khalifa Haftar, long an ally of the eastern-based Parliament. They say Mr Dbeibah's appointment of Mr Bengdara may represent an effort to court Mr Haftar's support for the GNU.

Last week, Mr Bengdara said NOC was lifting force majeure on oil exports after groups linked to Mr Haftar agreed to end an oil blockade that had reduced total Libyan output by 850,000 barrels per day.

On Tuesday it said output was restarting at El Feel field, reaching 40,000 bpd as production gradually increases to the field's usual 70,000 bpd.

It also said four tankers were due to dock in the ports of Zueitina, Es Seder and Ras Lanuf between Tuesday and Thursday to start loading crude.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks.

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.

8. Pillar 2 implementation

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

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