Libya, which has enjoyed a relatively stable political climate for several months, wishes to improve its oil production by 2022 to promote sustainable development.
On August 22, the governor of the Central Bank of Libya (CBL) Al-Siddiq Al-Kabir announced that the country must increase its oil production by 40%. This is expected to be raised to 1.8 million barrels per day in 2022, thereby helping to cover Libya’s expenses and boost the economy.
“With oil being almost the country’s only source of income, it is obviously essential that production rates increase in 2022. The country, which is at the top of Africa’s largest proven oil reserves, is currently pumping 1.3 million. barrels per day, ”he added.
It should be noted that the CBL works in close collaboration with the Ministry of Petroleum and the Libyan Public Petroleum Company (NOC) and that a budget surplus can be achieved if the price of oil remains stable and if the maintenance and modernization of NOC installations are indeed continuing.
Meanwhile, the financial institution expects oil revenues from black gold to reach $ 25 billion per year as soon as oil production stabilizes. This would be a significant increase from the $ 3.6 billion in 2020, when the freeze caused by the conflict between rival governments in the East and West resulted in the closure of infrastructure and a strong drop in production in Libya.
In addition, let us also note that in the short and medium term, the country should not resort to external borrowing because its total internal debt is at a level considered dangerous, above 270% of GDP.