Libya’s GNA approves 1.5 billion dinars budget to maintain high levels of oil production
Libya’s Presidential Council of the Government of National Accord said it had allocated 1.5 billion Libyan dinars ($1.06 billion) for the National Oil Corporation (NOC) to maintain oil production in 2019-2020, according to a resolution issued on Saturday.
The resolution said 1.2 billion dinars was allocated “for projects that contribute in maintenance of current production rates and increase the productive capacity of the oil and gas sector”.
A further 300 million was allocated to pay the NOC’s obligations to other companies.
The resolution stated that the Central Bank deposit the sum in “an emergency account” for the NOC to spend as planned.
The Presidential l Council also said the money would be drawn from fees imposed since 2018 on sales of foreign exchange, in a bid to end the gap between the official and parallel foreign exchange markets.
Libya’s current oil production is around 1.3 million barrels per day.
The NOC has frequently complained in the past that it was not receiving sufficient funding from the Tripoli based Government of National Accord (GNA).
Last Wednesday, the NOC said in a statement that production was expected to be severely affected if it did not get the budget funding it needed from the government.
The NOC also said the government “reduced the approved budget of the Corporation and its companies twice” this year without prior notice.
Libya’s oil production has fluctuated sharply in recent years due to attacks, protests and political conflict.