New oil minister promises the country’s energy sector will finally receive sufficient funding
After years of lacking in sufficient funding, Libya's oil sector - the country's primary source of income - will finally receive enough monetary funds to advance the country's oil facilities and increase its output
Libya’s newly appointed Minister of Gas and Oil, Mohamed Oun announced that the country’s oil sector is back on track with Libya’s National Oil Corporation (NOC) set to receive 1.6 billion dollars in developmental spending.
Minister Oui stated that “There is a reasonable allotment of funds for oil-sector activities,” noting that, “we believe it may suffice for the remaining ten months of 2021.” If approved by parliament, the NOC would receive the largest portion of the country’s developmental spending budget.
The NOC has stated for years now that the lack of funding by previous governments has negatively affected its growth as well as the country’s income with the company unable to keep up with repairs, demand and damages sustained to oil facilities during the civil conflicts due to a stark lack of sufficient funding.
Libya is home to Africa’s largest oil reserves and an uneven portion of the country’s economy heavily relies on the success of its oil sector, as it remains to be the country’s primary source of income.
With a third of the total development spending in the new 2021 budget going to the oil sector and the NOC earlier this month agreeing to release some of the oil revenues held in the Libyan foreign back, Libya’s economy is easing its way into recovery after some of the worst financial years the country had seen in decades.
With enough funding, NOC head Mustafa Sanalla has stated he expects the country’s output of oil to increase consistently – with production levels rising to a possible 1.45 million barrels this year and 1.6 million within two years if the government continues to provide the NOC with enough funding.
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