Page 28 - Nigeriaone mag 3 edition en

Libya has resumed oil production and exports

Oil well, El Sharara Libya

Oil production in Libya has rea- benefit from a 1 million bdp of State, Fathi Bachagha, the Prime
ched a level that has not been oil from Libya. Minister appointed by Parlia-
seen before the port shutdowns Libya’s oil production stopped ment earlier this year, and
that began in the spring. It when the country stopped expor- Prime Minister Abdul Hamid
stands at 1.211 million barrels ting oil. However, with the recent Dbeibah, who was appointed last
per day, according to the coun- decision to resume exports, the year through a process backed
try’s National Oil Corporation. oil production has resumed as by the United Nations, is not
The reopening of the ports has well. In july 2022, the first tan- beneficial to the country nor the
enhanced oil production, which kers loaded oil from key oilfields Region. In fact, this hinders the
resumed and went beyong the and ports, ending a long lasting commercial relations between
million barrel per day mark. crisis situation. the countries and freezes trades
This resumption of oil produc- Libya has long suffered from po- between them. As a
tion will have a direct impact on litical tensions over who should consequence, the populations
Libya’s economy as the country govern the country. This political are the first victims when the
is forced to restrict trading with instability is a major obstacle to economy is hit.
its neightbors. the economy and limits oil pro- Taking this into account, the
Because of its strategic position duction and exports. Fights bet- NOC is very aware of the
and important oil reserves, the ween rival militias in Libya have situation and the urgency to
level of oil supply from Libya has left a confusing political situa- resume trade and export of oil. It
a direct impact on oil prices. In tion as two rival governments intends an oil production output
fact, more oil supply from Libya continue to lock horns, and poli- rate of 1.2 million bpd in a very
will lead to a slight decrease in tical leaders flex their muscles to short period of time. This will be
the oil price. Indeed, when sup- control more territory and deter- a breath of fresh air for the
ply goes up and demand re- mine who is more powerful. population at a time when it
mains stable, prices tend to dec- The rivalry between the two who needs it.
rease. As a result, the market will proclaim themeselves Head of

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