Libya’s oil revenues in H1 2023 plummeted to $6.95 billion

According to a statement released by Libya’s central bank on Thursday, the country’s revenues from crude oil dropped to $6.95 billion (33.4 billion Libyan dinars) in the first half of the year, a decline from 37.3 billion dinars recorded in H1 2022.

Libya’s crude oil production during the first part of this year has surpassed the levels seen in the same period last year. According to OPEC’s secondary sources, Libya’s crude oil production averaged 1.157 million barrels per day (bpd) in Q1 2023.

It experienced a slight increase, reaching an average of 1.169 million bpd by May 2023. This marks an improvement compared to 2022, where production in the first quarter averaged 1.063 million bpd, with May 2022 production averaging only 0.707 million bpd.

Over the period from May 2022 to May 2023, Brent crude oil prices have witnessed a decline of approximately $30 per barrel. This decline is significant for Libya, as the country heavily depends on oil for the majority of its exports and fiscal revenues.

The distribution of oil revenues in Libya has been a contentious issue involving multiple governments. Recently, General Khalifa Haftar, the leader of the Libyan National Army (LNA), issued a threat, stating that unless the country’s political leaders establish a fair mechanism for revenue distribution by the end of next month, he would resort to force.

Haftar’s proposal involves the creation of a committee to allocate oil revenues, with a majority of the country’s oil production being located in eastern Libya. Failure to comply with this proposal may lead to the LNA employing force to assert its stance.

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In recent developments, the Government of National Stability in Libya announced its intention to halt the production and distribution of oil and gas. This action was prompted by the western-based Government of National Unity’s failure to appoint a representative from the eastern government to oversee the National Oil Corporation (NOC).

Additionally, Libya is facing challenges in attracting foreign investments to its oil sector.

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