On Saturday, the Ministry of Finance of the Tripoli-based Government of National Unity (GNU) indicated that its total revenues during the first quarter of 2023 amounted to 26.1 billion Libyan dinars (LYD) while the total expenditure hit 18.1 billion LYD, i.e. a surplus that exceeded 8 billion LYD.
In its latest report, which covers the first three months of 2023, the Ministry revealed that the state expenditures amounted to 18.1 billion LYD in 2023, while the total revenues amounted to 26 billion and 131 million LYD.
It added that oil revenues were recorded 25.3 billion LYD, while other sovereign revenues amounted to 512 million LYD, in addition to 117 million LYD remaining from previous years.
According to the report, royalties amounted to 10.3 billion LYD. 97 million LYD were from tax revenues, and 52 million LYD from customs, in addition to other revenues amounting to 195 million LYD.
The Ministry indicated that foreign currency exchange revenues over the last three months amounted to 5.3 billion dollars.
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.”
In the fourth quarter of 2022, a report by the International Monetary Fund (IMF) 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.
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.
Notably, the Chairman of Libya’s National Oil Corporation (NOC), Farhat Bengdara, said in February that the Corporation is seeking to maintain current levels of production and increase to 2 million barrels within 3-5 years.
Bengdara said that the NOC’s debts amounted to $1.5 billion dollars. He explained that revenues are paid to suppliers for gasoline and diesel, in order to supply power stations and petrol stations.
In January, Italy’s state-run energy company ENI signed an $8 billion deal with Libya’s NOC to develop two Libyan offshore gas fields as European nations seek to cut their dependence on Russian energy.
According to Reuters, the deal, signed during a visit to Tripoli by Italy’s Prime Minister, Giorgia Meloni, aims to increase gas output for the Libyan domestic market, as well as exports.
“This agreement will enable important investments in Libya’s energy sector, contributing to local development and job creation while strengthening Eni’s role as a leading operator in the country,” said Descalzi.