Libya’s state oil firm could suffer production decline over lack of government budget
The Libyan National Oil Corporation (NOC) is having difficulties in receiving the necessary budget money from the government, the Chairman of the NOC, Mustafa Sanallah, said on Monday.
“This could reduce production. The entire sector is suffering from these problems because of delays in the finance ministry disbursing budgets to the corporation for this year.” Sanallah made the comments after meeting the head of Al-Juf Oil Technology Company.
He added that the slowdown will create negative consequences for the whole sector leading to a large decline in the level of production once more and a negative impact on development projects in the oil sector.
The NOC, which has raised Libya’s oil production to more than 1 million barrels per day (bpd) from lows of around 200,000 bpd in 2016, receives its budget through the central bank and the internationally recognised unity government in Tripoli.
Libya’s production remains well below the 1.6 million bpd it was producing before a 2011 uprising that led to armed conflict between rival factions, with competing governments set up in Tripoli and the east of the country, according to Reuters.