The Oil Corporation announced the resumption of production after lifting the state of “force majeure” on all oil fields and ports.
In this context, political analyst Idris Ahmeed explained that “lifting the state of force majeure and resuming the work of ports and oil fields will contribute to strengthening the economic aspect in light of the difficult challenges facing Libya.”
He added to Sputnik, “Any disruption will further aggravate the economic crisis, at a time when the country needs to benefit from the reforms and revenues generated by the oil sector, as well as search for alternatives to this sector due to the fluctuation of oil prices in the global market.”
He pointed out that “the current oil income is not sufficient to rebuild the Libyan economy,” stressing “the importance of resuming the work of oil fields, especially in light of the events taking place in the Gulf region and the Middle East, which will increase the demand for Libyan oil.”
Ahmeed expected, “Libya will witness a kind of partial stability with the restarting of the oil sector and the appointment of a new governor for the Central Bank, in addition to taking steps to address the economic crisis,” stressing that “Libya needs greater consensus between the various parties and overcoming differences,” noting that “ “The current solutions are temporary and require stability and a unified government.”
He added, “This step comes at an important time, and the large losses that the country has incurred in the recent period must be rectified.”
He stated that “the oil sector, as the country’s only resource, needs stability and effective governance to be able to contribute to the country’s renaissance,” and he also stressed “the need to benefit from the increasing demand for oil as a result of the unrest in the region.”
He pointed out the importance of “distributing oil revenues fairly to achieve development in various Libyan cities and regions.”
He stated that any “disagreements between political parties in the country negatively affect the economic situation and increase the amount of losses,” stressing “Libya’s need to change policies with the aim of strengthening international confidence in the oil sectors and the central bank and ensuring continuity of international dealings with them.”
He praised “the recent agreements between the House of Representatives and the state, considering them a positive step that may contribute to establishing a new government,” stressing “the necessity of continuing agreements to address the crises that the Libyan citizen has suffered from,” calling for “taking advantage of experts to provide serious economic solutions that contribute to improving the economic situation.” In the country.”
For his part, economic expert Ali Al-Mahmoudi explained, “The announcement of lifting the state of force majeure should have been issued by the National Oil Corporation, and not by the governments, because this institution is the body authorized to enter into international contracts and manage the oil sector.”
He stressed that “the resumption of production in the oil sector will have a positive impact on the country, especially since it is the main source of income, and despite the losses incurred by Libya, the continuation of production will contribute to maintaining the stability of the economy and reduce the risk of collapse,” stressing “the necessity of searching for new sources of income.” And increasing production rates to ensure long-term economic recovery.”
Al-Mahmoudi pointed out to “Sputnik” agency that “the oil closure was the result of disagreements between political bodies, and with the recent consensus, the role of the parties that were behind the closure ended,” and stressed that “all Libyan parties are in dire need of oil revenues to finance their projects, and therefore no one wants party to prolonging the period of production disruption,” pointing out that “some companies have already begun to gradually resume production.”
He added, “The Libyan economy is in urgent need of every drop of oil,” noting that “the expected deficit before the closure was $13 billion, but with the closure of the oil and Sharara fields, losses reached a third of production.”
He explained that “the oil that will be produced in the remainder of the year may only be sufficient to pay salaries and basic expenses,” noting that “the National Oil Corporation needs to take clear steps to increase production, despite spending large sums of money for this purpose, but production has declined.” Instead of an increase, they pointed out that “the Libyan economy is suffering greatly as a result of recent events in the oil sector.”
Al-Mahmoudi explained, “The recovery of the economy does not depend only on appointing a new governor for the Central Bank, but rather on developing clear plans and strategies. The role of the Central Bank is to curb inflation and strengthen the currency, not to revive the economy, which is one of the tasks of the executive authorities.”
Yesterday, the National Oil Corporation announced “lifting the state of force majeure in all crude oil fields and ports.”
The head of the Libyan General Oil Syndicate, Salem Al-Rumaih, confirmed that “oil production in the fields that were closed due to the imposition of force majeure has begun to gradually return.”
Al-Rumaih explained to Sputnik, “The lifting of force majeure is what paved the way for the resumption of production operations in these fields, which means that the gradual return to production will double in the coming period.”
Last updated: October 4, 2024 – 17:21
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2024-10-04 15:35:43