Libya’s NOC receives $1bn in Government funding

In Libya, the government recognized by the international community on Sunday allocated an amount of 1.5 billion Libyan dinars ($ 1.06 billion) to the public oil company (NOC). The objective of this investment is globally to support oil production for the 2019-2020 fiscal year.

Specifically, the government has specified that 1.2 billion dinars will be used to maintain a certain range of production rates and to increase the production capacity, both of oil and natural gas. The rest of the amount will be used to pay the company’s obligations.

The Central Bank will deposit the amount in an emergency account to facilitate the transactions of the company, says an official document that adds that the money will be levied on taxes on sales of foreign currency, imposed by the Libyan authorities since 2018 .

For the last three years, the NOC has been complaining about the lack of support, particularly financial, from the government, to enable it to reach its production targets. A few weeks ago, the company revealed that the government that is based in Tripoli, has reduced twice its budget and that of its subsidiaries.

Today, oil production is about 1.3 million barrels a day. The goal is to exceed the 2 million barrels a day mark in the next two years.

 

Source: Agence Ecofin

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