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Libya earmarks $50B to boost oil production

The Address | Benghazi – Libya

TOKYO – National Oil Corporation (NOC) has set aside a budget of around $50 billion for 2019 to develop its oil and gas sector, as it strives to reach a pre-2011 output level of around 1.6 million b/d by the end of this year, a senior Libyan industry official told S&P Global Platts.

“Fifty billion dollars is the budget for this year to improve oil and gas production and to improve downstream [operations] but most of this is for crude oil,” Chairman of Ras Lanuf Oil & Gas Processing Co. Shaaban Bsebsu, said in an interview on the sidelines of the 37th JCCP International Symposium in Tokyo last week.

Bsebsu added that Libya was currently producing around 1 million b/d of crude but that it aimed to boost its output to around 1.6 million b/d this year after overcoming technical and security challenges.

“We try to do this but we have a lot of security problems we face, and we try to sort out conditions [to] be better,” Bsebsu said. “[We] have a plan to reach more than 2 million [b/d] in 2020,” he added.

Ras Lanuf Oil & Gas Processing Co. is a subsidiary of NOC. NOC receives its budget from the Tripoli-based Central Bank of Libya (CBL), which is authorized by the Tripoli-based Government of National Accord (GNA).

NOC chairman Mustafa Sanalla has previously complained that it has not always received the entire capital spending allocation from Tripoli in the last two years, according to S&P Global Platts.

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