Thanks to the national unity government that was put in place on March 10, Libya, which has Africa’s largest crude oil reserves, is about to turn the page of 10 years of conflict. The repercussions on the energy sector are expected.
On March 31, Mohamed Ahmed Aoun, the new Libyan Minister of Oil and Gas, announced that the national energy sector will receive significant financial support from the government to carry out its activities. A breath of fresh air which, he promises, will make it possible, for example, to maintain crude production in high proportions throughout this year. At this time, no details have been leaked as to the exact amount in question.
This announcement comes at the right time for the NOC, which was actively seeking funds to modernize all facilities in the sector and effectively revive the industry. This financial contribution, combined with the immense untapped reserves of crude, the legal framework and the beginning of current political stability, will allow the Libyan oil sector to increase its production to 1.6 million barrels per day, within the next two years. .
With the recent formation of an interim government of national unity, a budget of $ 1.6 billion has been approved and a third will be allocated to the State Petroleum Company (NOC) to rehabilitate the various national energy infrastructures.
“There is a reasonable allocation of funds for petroleum sector activities. We believe this may be sufficient for the remaining months of 2021, “the minister commented in an interview.
Remember that despite the truce, a large part of the country is still under the control of armed militias and thousands of foreign mercenaries are still on the territory. The current unity government will rule Libya until elections scheduled for December 2021.
Source Ecofin Agency