Libya’s National Oil Corporation warns of a possible decrease in oil production over the coming nine months amid the government’s policy to withhold budgets approved for the company.
“National Oil Corporation (NOC) warned that Libyan oil production may fall precipitously over the next nine months if the government continues to withhold already approved budgets. NOC recorded August 2019 revenues of approximately 2 billion USD, a decrease of 117 million USD (5%) compared with July, and an increase of 466 million USD (30%) compared with August last year,” the corporation said in a press release late on Wednesday.
On the same day, NOC chairman Mustafa Sanalla told reporters on the sidelines of the Russian Energy Week that Libya’s oil production stood at 1.3 million barrels per day.
In the NOC statement late on Wednesday, Sanalla said that the corporation could boost Libya’s oil revenues if its budget was disbursed. The official urged the government to disburse the funds, saying otherwise, the oil sector would be affected.
Sanalla also explained that the oil output decrease in August might have also been caused by the closure of the Sharara-Zawiya trunk pipeline in the first half of the month.
The situation in conflict-torn Libya remains tense since April, when the eastern-based Libyan National Army engaged in an offensive to gain control over Tripoli, the seat of the internationally recognized Government of National Accord.