NPCC CEO and Libya's Undersecretary of the Ministry of Oil and Gas
Eng. Ahmed Al Dhaheri CEO at Abu Dhabi National Petroleum Construction Company (L) and Libya's Undersecretary of the Ministry of Oil and Gas for Production Affairs Mr Refaat Al-Abbar (R)

Libya opens the door for Arab investments in oil and gas after years

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Libya’s Undersecretary of the Ministry of Oil and Gas for Production Affairs, Mr. Refaat Al-Abbar
began his four day Arab countries tour from the United Arab Emirates (UAE) in order to establish a cooperation between his country and Abu Dhabi National Oil Company (ADNOC),  one of the world’s leading energy producers  and the National Petroleum Construction Company, which is located in Abu Dhabi and engaged in oil constructions.

Libya needs to rebuild all port infrastructure and storage facilities and the UAE has the technical capabilities and modern technology. The UAE will contribute to developing oil wells and building new tanks to raise storage capacity and achieve an increase in production rates to 2 million barrels in 2023 in the oil-rich North African country.

Ali Al-Farsi, a Libya-based oil writer, says Mr Al-Abbar is working on the coordination between the Libyan government and various institutions within the oil and gas sector, an important step for the continuation of production, following the Undersecretary’s first visit to the fields in the basins of Sirte, in the central part of the country.

Libya Oil Fields
(Oil Fields in Libya)

Due to the delay in approving the general budget proposed by the Government of National Unity and lack of funding, Libya’s production declined to 1.3 million barrels in 2021. Production is expected to reach 1.5 million barrels in mid-2022 if the political situation continues to be stable.

Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), was producing 1.6 million bpd before a civil war erupted in 2011. Energy facilities shut or damaged during its civil war were reopened in 2020.

In November 2020, the UN-sponsored Libyan Political Dialogue Forum (LPDF) selected a new executive authority of a unity government and a presidency council. The new executive authority’s main task is to prepare for the general elections to be held on Dec. 24, 2021, as endorsed by the LPDF.

Libya is home to Africa’s largest oil reserves and its oil industry has proved resilient. During 2021, the country has exported more oil to China and Europe with Italy and Spain being the major importers.

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