Energy experts talk about Libya’s current capacities in this sector, and it is hoped that they will reach it in the near future, and the repercussions of lower or higher prices and production on its economy and its stability.
Libya aims to increase its crude oil production in the remaining six months of this year to 1.3 million barrels per day, an increase of 96,000 barrels from the current rate of just over 1 .2 million barrels.
Efforts to increase production to two million barrels
In order to achieve the country’s highest oil production rate in more than 10 years, the new management of the Libyan National Oil Corporation, according to press releases from its chairman, Farhat Bin Qadara, sought to:
End incidents of certain groups closing oil fields during political and social protests. Improve the wages of workers in the sector. These steps have contributed to a steady increase in production since January 2022, until now. Investments worth $17 billion are expected to be injected into 45 projects to increase production to two million barrels per day within 5 years. For this, the government will offer concessions to develop additional fields next year. Resumption of natural gas supply to the Mellitah complex after maintenance.
large reservations
Libya has oil reserves amounting to 48 billion barrels of oil, in addition to the presence of shale oil, the investment of which will bring the reserves to 70 billion, according to the Libyan consultant in the oil and gas sector, Abdul Jalil Al-Mayouf.
In the words of Al-Mayouf, Libya is now “in a race against time to complete the new investment projects pumped by the companies “Eni” and “Total”, which need 5 years”, in order to face the possibility of the end of the Ukrainian War, which drove up prices, during this period.
Libya exports most of its oil production to Europe and China, and to develop its potential it needs long-term investment, as indicated by Al-Mayouf, who confirmed that the country has other important resources, with which it can be a destination for immense solar and wind power generation projects.
necessity for the economy
Efforts to increase production are necessary for the stability of the Libyan economy, as Hussein Attia, professor of economics at Benghazi University, explains:
The average price of a barrel of Brent oil has fallen in one year since May 2022 from 110 to around 75 dollars per barrel during this month of May, and if it fell more than that, it would be a major problem for the economy. of the country, especially given the value of the dinar. This decline will lead to higher commodity prices in the market and other economic problems that the current authorities may not be able to solve. As for the increase in production, and in the event of an upturn in oil prices, Libya will achieve a surplus in the balance of payments. This allows the Central Bank to increase its foreign exchange reserves, or to increase its investments inside or outside.
Continental acclaim
In its latest report, the African Energy Chamber commended the efforts of Libya, along with 4 other countries, namely Egypt, Algeria, Nigeria and Angola, for allowing them over the course of from the first quarter of this year to achieve good growth rates of energy production, to record the mainland’s daily production volume of about 7 million barrels per day of energy liquid energy products.
Libya is currently experiencing a rapid recovery in the energy sector. Exceeding its daily production volume of 1.2 million barrels in 2022, according to the Chamber, which linked this to the Oil Corporation’s recent board change, expecting production volume to be stable this year.
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