Libya’s National Oil Company (NOC) is examining Total’s $450 million deal to acquire Marathon Oil’s assets in the North African country, according to NOC chairman Mustafa Sanalla.

On 23 April, Sanalla said his organisation is “discussing arrangements” and was yet to approve the deal. His statement has cast doubt over whether France’s Total will be allowed to go through with the deal.

Total announced it had acquired Marathon Oil’s assets in Libya last month. If the purchase does go through as planned it will more than double Total’s production in Libya.

“Any transaction of this nature must have the approval of NOC and the Libyan authorities,” Sanalla said in a statement.

“Any attempt to conclude the sale prior to this approval would be in breach of the concession’s contractual agreement.”

As things stand, Marathon Oil owns a 16.3 per cent stake in Libya’s Waha Concessions.

This stake gives it access to daily production of about 50,000 barrels of oil equivalent – and 500 million barrels of reserves and resources.

Libya’s NOC owns 59.2 per cent of the Waha Concessions. Texas-based ConocoPhillips and New York-based Hess also hold stakes.

“To secure NOC approval, the transaction should deliver the best possible outcome for all the Libyan people, taking into account Libya’s security situation, its fiscal position and external investment requirements,” Sanalla said.

He also said that Libya’s NOC will publish details of the transaction when it is concluded.

The Waha concessions' total production capacity is about 300,000 barrels a day (b/d). It currently produces less than this after an attack on a pipeline reduced output.

Total said last month that Waha is expected to pump more than 400,000 b/d by 2030. The oil major produced 31,500 b/d at several other Libyan fields last year.