Sept 26, 2023. Posted by Balkan Periscope - Hellas
Libya’s
Supreme Council for Energy Affairs has called on the state-owned National Oil
Corporation (NOC) to expedite negotiations with international companies, to
begin investments in the Ghadamis Basin.
During a regular meeting chaired by the Prime Minister of the Government of National Unity (GNU), Abdel-Hamid Dbaiba, the government affirmed the need for supporting flood-affected cities in eastern Libya.
The meeting
was dedicated to discussing the outcomes of negotiations conducted by the NOC,
with global firms regarding the allocation of Block NC7. This is a designated
area within the Ghadamis Basin dating back to 1979.
According
to a statement by the GNU, studies have revealed significant oil and gas
reserves within Block NC7. These reserves are estimated at approximately 64
million barrels of oil, 39 million barrels of condensates, and a substantial
volume of 2.4 trillion cubic feet of gas.
Furthermore,
the Council endorsed the NOC’s initiative to reduce carbon emissions, and
directed all institutions to actively participate in this endeavour.
During the
meeting, Dbaiba highlighted the need to sustain the government’s plan to
increase oil and gas production, through collaboration and investment with
global companies. He urged for taking advantage of rising prices, and the
world’s growing demand for these resources.
The current power vacuum in Libya has triggered a cascade of events leading to internal strife, factional infighting, and outside intervention, significantly affecting Libya’s oil output and consequently, its economy.
Oil
production has been fraught with challenges in the past decade. Following the
ousting of Muammar Gaddafi in 2011, Libya has endured ongoing conflict and
political turmoil. The discord led to the division of the country into rival
factions, each controlling different regions and parts of the oil
infrastructure.
These
political divides have had a significant impact on production and export
capabilities. The country has faced several blockades and closures of its oil
fields and export terminals, often used as bargaining chips in political
negotiations. These disruptions have led to dramatic fluctuations in production
levels, causing significant uncertainty in the global oil market.
The
nation’s oil sector remains crucial not only for Libya’s economic recovery, but
also for the stability of global energy supplies.
LR
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