Libya Seeking to Increase Oil Production to 2 Million BPD

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Libya Seeking to Increase Oil Production to 2 Million BPD
Libya Seeking to Increase Oil Production to 2 Million BPD

The Chairman of Libya’s National Oil Corporation (NOC), Farhat Bengdara stated that they are seeking to increase production levels to 2 million barrels within 3-5 years.

In press statements, Bengdara said that the NOC’s debts amounted to $1.5 billion dollars. He explained that this is because the Corporation “sells oil and pays part of the income to suppliers for gasoline and diesel, in order to supply power stations, and for fuel in petrol stations.”

He pointed out that the credibility of the NOC is “weak” globally, and that no one supplies fuel to it, except after payment. He also referred to the existence of “political and social pressures” exerted on the Corporation.

Notably, Libya’s total oil revenues rose to 105.5 billion Libyan dinars ($22.01 billion) in 2022, compared to 103.4 billion dinars ($21.5 billion) in 2021, the Central Bank of Libya (CBL) announced earlier this month.

In recent months, Libya’s oil sector has stabilized, and production has risen to 1.2 million barrels per day. The Minister of Oil and Gas, Mohamed Aoun expressed his hopes that “oil production will return to 2010 levels within two or three years.”

However, some groups have blockaded oil facilities for factional demands. The Tripoli-based Government of National Unity (GNU) said that it had lifted “the force majeure on exploration operations for oil and gas production.” It has called on international oil companies that have concluded contracts with the National Oil Corporation (NOC) to resume their work in Libya.

In the fourth quarter of 2022, a report by the Monetary Fund stated that Libya will be the fastest-growing Arab economy in 2023. It is set to have a growth rate of 17.9%, compared to 3.9% for Arab states.