Libya
The head of Libya's National Oil Corporation made a rare appearance on Wednesday. Denouncing a lack of state investment, Mustafa Sanalla mentioned dilapidated networks that required regular servicing.
If Libya sits on the largest known oil reserves in Africa, it lacks the necessary installations to exploit the natural resource. The powerful head of Libya's National Oil Corporation decried a lack of state investment in the country's energy sector, on Wednesday. "The conditions were not ideal during the year 2020-2021, he started. The situation was critical and we did not obtain the necessary budgets for that year. We started the year 2021 with large debts reaching 2.953.941.000 Libyan dinars."
In a decade of violence since the 2011 revolt that overthrew and killed former leader Moamer Kadhafi, armed groups have frequently blockaded or damaged oil installations, and some have been destroyed. In 2021, Libya’s lifeline oil and gas exports managed to raise revenues of more than $21.5 billion in 2021, the highest level in five years.
60-year-old equipment
However, a low budget coupled with political instability still keep Libya’s economy hostage. "The National Oil Corporation seeks to maintain production rates of 1.200.000 barrels. We've set a plan to increase these numbers if we are able to obtain funds, but without them, maintaining this number is considered an achievement in itself, because the fields' lines are worn and every day we stop them and we can carry out maintenance and repairs on equipment that is 60 years old."
Injecting money in Libya's energy sector seems vital since the country is heavily dependent on revenues from its oil and gas exports. The World Bank estimated in 2019 that oil rents amounted to 43% of Libya’s GPD.
Go to video
At least 50 migrants dead on a boat coming from Libya
01:21
Libyan leaders agree to form unified govt that will supervise elections
02:29
DRC: concern over the potential development of oil drilling
Go to video
Activists urge Nigeria to delay Shell's $2.4 billion sale of assets in deeply polluted Niger Delta
01:01
Returning sea migrants to Libya is illegal- Italy's Court of Cassation
Go to video
After record year, Tunisia reports migrant deaths from shipwreck near Libyan waters