On Thursday, the Chairman of the National Oil Corporation (NOC), Mustafa Sanalla held a meeting with representatives of the US company, UOP Honeywell. They discussed opportunity’s for the company in the oil and gas sector, foremost of which is the construction of an oil refinery in southern Libya.
“Details of work scope and implementation contracts will be discussed in the coming days,” the NOC added in a statement.
Notably, the NOC announced a temporary halt at the oil ports of Brega, Zueitina, Ras Lanuf, Zawiya, Mellitah and Sidra, due to the bad weather conditions along the Libyan coast.
The National Meteorological Center warned of strong winds along the coast, extending from Al-Khums to the east of the country. These are expected to have a speed of between 25 and 30 knots, and waves exceeding 4 to 5 meters.
Last month, the NOC announced that the country’s revenues of oil and gas exports reached more than $21.5 billion in 2021, the highest level in five years.
The state-run NOC said that the total net revenue for oil and gas exports last year amounted to $21.5 billion dollars, as well as €30 million euros in non-dollar sales.
It added that the record levels were achieved in November and December, raising a combined $4.3 billion in the two last months of 2021.
“The end of the year 2021 recorded a recovery, and oil prices achieved their largest annual gains since 2016, driven by the recovery of the global economy from the state of stagnation due to the coronavirus epidemic,” NOC Chairman, Mustafa Sanalla said.
Since the 1970s, Libya, which sits on the largest known oil reserves in Africa, has been heavily dependent on revenues from its hydrocarbon exports.
However, in a decade of violence since the 2011 revolt that overthrew and killed long-time leader Muammer Gaddafi, armed groups have frequently blockaded or damaged oil installations. The shutdowns have forced the NOC to declare force majeure, a legal move allowing it to free itself from contractual obligations in light of factors beyond its control.
Oil production has recovered to 1.2 million barrels per day, a week after militias ended a three-week blockade of several fields, including the nation’s largest. Prior to the closures, Libya’s oil sector was experiencing a period of calm. Production rose above one million bpd in late 2020, and averaged around 1.2 million in 2021.