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November marks Libya’s third highest oil revenue in 2018

The revenues of crude oil and its derivatives alongside tax revenues and royalties from the concession contracts reached $2.4 billion in November, which is the third highest monthly revenue since the beginning of 2018.

In a Friday statement, the National of Oil Corporation (NOC) announced that although these revenues are lower than October, estimated at $2.87 billion, the November revenue was the third highest monthly figure in 2018.

The NOC said the full-year revenue is expected to surge by 76 percent to $24.2 billion compared to 2017.

Despite recurrent security problems that have affected output from Libyan oilfields, NOC’s revenue has been boosted this year by higher oil prices and production.

Libya currently produces about 1.15 million barrels per day of oil.

NOC Head Mostafa Sanalla stressed that the corporation exerts efforts to improve the Libyan economy and provide the needed funds to ensure that the Libyan oil wealth is distributed fairly among citizens.

He added that NOC has taken the necessary measures for el-Sharara oil field production and operation to return to its normal rate, and that it will be reopened after the government restructures the Petroleum Facilities Guards.

Although Libya has witnessed instability and several oil fields have been shut down then reopened since 2011, its oil production climbed to the highest since 2013 and can go even higher if security at the nation’s energy facilities can be improved, Sanalla said in September.

He added that continued instability in the country with Africa’s largest oil reserves means the NOC may have to revise its 2022 production target of more than 2 million barrels a day, according to Bloomberg.

The latest shutdown of the oil field occurred earlier this month when Libyan tribesmen protested at Sharara oilfield and threatened to cease production until their demands are fulfilled.

Hence, a new security plan to secure Libya’s oil fields and institutions was announced by head of the Libyan Presidency Council Faiez Sarraj and Sanalla on Dec. 24.

During their meeting in Tripoli, Sarraj and Sannalla agreed on several new measures, including the restructuring of the Petroleum Facilities Guards and enhancing their training programs.

Sannalla discussed with Sarraj NOC’s suggested security plan for oil fields and vital institutions. He also suggested establishing “green- safe areas” inside Petroleum sites to prevent the entry of anyone without permit.

The suggested plan also includes changing Sharara oil field senior guards and banning
all unauthorized people from entering the field.

Last week, the Libyan Council for Oil and Gas said Sharara’s production will return to 315,000 barrels per day within 60 days.

However, a few days later on Friday, NOC announced it will not lift the force majeure state at Sharara oil field.

Sannalla said in a statement that the situation in the oil field remains dangerous, and the force majeure state cannot be lifted until there is an alternative security plan.

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