Warnings of political and social pressures “burning” Libya’s oil

Warnings of political and social pressures “burning” Libya’s oil
Warnings of political and social pressures “burning” Libya’s oil
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Updated Monday 1/23/2023 12:30 AM Abu Dhabi time

A Libyan official warned of the dangers of political and social pressures on the Oil Corporation, which threatens to close oil fields again.

After the stability of the Libyan oil sector and its achievements under a new administration, fears have recently emerged that the administration, which succeeded Mustafa Sanallah, would obstruct the march of that administration.

These fears were expressed by Farhat bin Qadara, head of the Libyan National Oil Corporation, today, Sunday, during statements to the Libyan “Al-Masar TV”.

Bin Qadara said during the interview that “the conduct of the Libyan Oil Corporation’s work is not without political and social pressures.”

While Bin Qadara did not clarify the nature of the political pressures, he explained that the social pressures are represented in threats issued a week ago by the local residents of the oil field areas, who demand that their children work there.

Bin Qadara added that “oil production and sale only encourages consumption and corruption,” stressing that “if everyone does not feel that he is benefiting from oil revenues, then he will turn to closing the fields, as happened previously.”

In addition to the ongoing political conflict in Libya, there is another conflict over oil revenues, as the Libyan Parliament and the regions of eastern Libya demand a fair distribution of those revenues, as they flow exclusively into the treasury of the Central Bank in Tripoli, which is run by the great friend accused of financing armed militias in the west of the country.

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The head of the Libyan National Oil Corporation indicated that the new administration of the corporation seeks to “maintain the current production level (one million and 200 thousand barrels per day) and raise it to 2 million barrels within 3-5 years.”

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Also during the interview, the head of the Libyan Oil Corporation touched on what is being raised about the oil country’s standing on the cusp of a fuel shortage crisis, saying, “We have a fear of a shortage in the corporation’s account, and thus a shortage of fuel and electricity cuts,” pointing out that “the budget for purchasing diesel and gasoline annually amounts to 36 million dinars.”

He added, “The Electricity Company consumes about 24 billion dinars of gas annually. If this amount were exported, we would get the amounts as profits, but we prefer the stability of the network.”

He continued, “We deal flexibly with the state’s decision to continuously feed the corporation’s account to buy gasoline (…) the corporation’s credibility in front of the world is weak, and no one supplies us with fuel except upon direct payment.”

The head of the Oil Corporation revealed that his country does not deal with “bartering oil for the supply of fuel,” stressing that the matter is done through “selling oil and part of the income is paid to suppliers for the price of gasoline and diesel.”

The new administration of the Oil Corporation in Libya has made leaps, after years of deterioration of the owner of the previous administration, which was overthrown on July 7, against the background of the demands of the people of the oil regions, who closed exports for three months, to dismiss its former president, Mustafa Sanallah, who ran the sector for eight years in violation of the law. Libyan.

Libya is considered one of the oil countries that possess large reserves of oil and gas, as the latest statistics for the year before last 2021 indicate that there are oil reserves estimated at 48.4 billion barrels, which makes it the owner of the largest proven reserves of crude oil in Africa, while it occupies the ninth position in terms of the most possession of reserves. globally with a share of 3%.

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