NOC, Libya’s National Oil Corporation disclosed that a forced production shutdown since January projected to result in output decline of 650,000 barrel/day in 2022 from 1.2 million barrel/day in early 2020. The shutdown was provoked by civil war eastern forces that blockade the facilities. The civil war flared right after Muammar Gaddafi post-toppled chaos in 2011. With this situation, the NOC has $6.5 billion in lost production. NOC statement said that production in 2022 will be cut half in reason of the absence of immediate restart and the requested budget is failed to provide by state. The central bank of Libya said that the blockade had caused $7 billion of losses so far, leaving the revenue at 2.17 billion dinars ($1.56 billion) in the first half of this year, a massive slump of 85% lower compared of the first half last year.
The bank disclosed that it had allocated $1.55 billion to cover fuel subsidies and expenses, also 1.2 billion dinars to NOC as an exceptional budget. NOC added that the damage condition in some field was permanent, the dwindling well productivity with a probability of water encroachment in the Sara oilfield, some wells would have to be shut down. The work also would have to be conducted on between 160 to 260 wells at between $50 million to $100 million, adding to cost of maintenance and repair of the pipeline network and other equipment.
