Libya’s Audit Bureau: Oil Revenues to Drop to $6 Billion in 2020 amid Oil Facilities Closure


On Saturday, the Audit Bureau announeced that oil revenue losses could reach $6 billion at the end of 2020 if oil facilities continue to be closed, compared to revenues of $31 billion in 2019.

The Bureau expected that the continued closure of oil facilities would lead to a deterioration of the dinar exchange rate against the dollar in the parallel market. The dollar may rise 100 percent against the Libyan dinar, as it is likely to rise from 3.6 dinars to 6.3 dinars by the end of the year.

Libya’s Audit Bureau also indicated that the continued closure of ports will affect the central bank’s foreign exchange reserves, which was estimated to drop from 63 billion dollars to 50 billion dollars during the same period, adding that some oil wells may be permanently lost.

The vast majority of NOC facilities have been closed since January 17, 2020. Global oil prices have also crashed as the coronavirus pandemic hits demand, with no prospect of a quick recovery in sight.

The blockade comes amid continued fighting between Field Marshal Khalifa Haftar’s Libyan National Army, loyal to the eastern-based Interim Government, and forces loyal to the Government of National Accord in Tripoli.