The Governor of the Central Bank of Libya (CBL), Al-Siddiq Al-Kabir urged for boosting oil production to fill the shortage in global energy supplies caused by the Russia-Ukraine war.
In an interview with Bloomberg, Al-Kabir said Libya needs to “enact sweeping development plans and diversify the economy, which is heavily reliant on energy exports.”
“Output needs to be at least 1.4 million barrels per day if we want to make a shift in Libya’s economy,” Al-Kabir told Bloomberg from the capital, Tripoli.
Libya is currently pumping about 1.2 million, which Al-Kabir described as “not enough to cover hikes in government spending, should crude prices fall below $70 a barrel.”
“The CBL supports the government’s efforts to boost output in solidarity with the international community, and to fill the shortage in energy supplies caused by the Russia-Ukraine war,” he added.
Al-Kabir noted that the NOC had received about $1.7 billion this year for unspecified development projects. “More oil income would allow Libya to expand development and infrastructure projects, stimulate the private sector, and diversify the economy and sources of income,” Al-Kabir added.
He revealed that Libya’s current domestic debt remains unchanged, at about 155 billion dinars ($31.7 billion)
Al-Kabir pointed out that the efforts to reunify the Central Bank have faltered due to this year’s split between the Tripoli-based government, and the Parliament. “It may resume as soon as political stability returns, even if only relatively,” he concluded.
In February, Libya’s Oil and Gas Minister, Mohamed Aoun stated that Libya is trying to stay neutral in light of the recent tensions between Russia and the West.
In an interview with Bloomberg, Aoun added that Libya is not able to produce more natural gas, to supply Europe. He noted that the United States may ask other countries to increase their production of gas. “Libya does not have sufficient reserves that are commensurate with any increase in production capable of making any difference,” the minister noted.
He pointed out that Libya cannot contribute much to the gas sector. “Despite the agreement with Italy to supply it with Libyan gas, the need for greater energy supplies in Libya in recent years has led to an agreement with Italian companies to reduce the quantities of exported gas, for internal use,” Aoun claimed.