Libya: Oil companies warn of production setbacks due to delayed budget allocations

The Arabian Gulf Oil Company (AGOCO), National Construction, and Al-Jawf companies have issued a stern warning regarding the adverse effects of delayed operational budget disbursements, describing this as a significant barrier to projects aimed at boosting production.

The companies raised these concerns during the first session of the General Assembly of the National Oil Corporation (NOC) in Benghazi on Sunday February 2, where the difficulties they face were discussed, NOC said in a statement released Monday February 3.

The session reviewed the companies’ plans, strategic projects, and their 2024 budgets, alongside key initiatives aimed at increasing production.

The management committee heads of the three companies highlighted that the lack of sufficient operational funding was hindering crucial projects designed to ramp up production. They cautioned that any further delays in budget disbursement could undermine the stability of production, which is currently maintained at 1.4 million barrels per day. The companies emphasised the urgency of securing the necessary funds to ensure that set production targets for this year can be met without further setbacks.

During the session, acting Chairman of the NOC Board of Directors, Masoud Suleiman, commended the Arabian Gulf Oil Company’s achievements, particularly its success with the “L63” project, which saw the addition of two power units with a combined capacity of 36 megawatts, helping to stabilise energy supplies at the Messla and Sarir fields. Suleiman also called for expedited progress on the Messla and Sarir gas exploitation project to further stabilise the network. Additionally, the NOC acknowledged the efforts of the National Oil Construction Company and Al-Jawf Company for their contributions to enhancing production capacity and increasing storage facilities across multiple projects.