Libya's NOC secures $2 billion operating budget amid push for increased oil production

Libya's National Oil Corporation (NOC) has received a critical operational budget of over 13 billion Libyan dinars, roughly equivalent to $2 billion, through a Unified Spending Arrangement. This agreement, facilitated by U.S. mediation between western and eastern Libya, is described by NOC Chairman Masoud Suleiman as a "lifeline" for the corporation. The allocation aims to stabilize the oil sector, which has faced challenges due to funding delays.

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The Unified Spending Arrangement (agreed between western and eastern Libya thanks to US mediation) provided the NOC with a "lifeline," allocating an operating budget exceeding 13 billion Libyan dinars, equivalent to roughly US$ 2 billion.

The NOC has ambitious plans for the sector's development, targeting a production of two million barrels per day by early 2031, a goal that requires a total of $36 billion in investment. To achieve this, the corporation is actively seeking $16 billion in funding from foreign partners. Alongside this, the NOC is committed to investing $20 billion of its own funds. This strategy is designed to overcome the past era of delayed funding, which caused significant problems and anxiety for both the NOC and its international collaborators.

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The NOC requires US$ 36 billion to develop the sector and reach a production target of two million barrels per day by early 2031.

Currently, the NOC is maintaining production levels at approximately 1.4 million barrels per day, a figure enabled by the recent flow of funds. To cover daily operating expenses, about $300 million per month is required. Furthermore, the corporation has secured an initial $1 billion loan from the Libyan Foreign Bank, intended for projects aimed at boosting production to over 1.5 million barrels per day by mid-2027. An additional $1 billion loan is committed upon achieving this milestone.

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We are seeking US$ 16 billion in funding from foreign partners, alongside the NOC's own commitment to invest US$ 20 billion.

The Unified Spending Arrangement signifies a move towards greater financial stability and predictability for Libya's crucial oil industry. By rescheduling past debts for repayment over 2024 and 2025, totaling approximately 25 billion Libyan dinars, the NOC is working to clear its financial obligations while pursuing growth and increased production capacity.

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We have concluded an agreement for a US$ 1 billion loan from the Libyan Foreign Bank to implement projects that will raise production to over 1.5 million barrels per day by mid-2027. There is a commitment to provide another US$ 1 billion once this target is achieved.