Page 4 - AfrOil Week 02 2022

AfrOil COMMENTARY AfrOil

NOC subsidiary’s employees building new warehouse in 2020 (Photo: Waha Oil Co.)

Uncertain outlook

for Libyan oil sector

As the North African state enters 2022, it is trying to rebuild and consolidate

its gains against a backdrop of increased risk and changing circumstances

Libya spent a great deal of time and trouble Then on the other hand, it was also attempt-
in 2021 on rebuilding its oil industry, its main ing to uphold the very real victories it sustained
WHAT: source of foreign currency earnings. in the last four months of 2020. Between Sep-
Libya has yet to resolve It was, on the one hand, attempting to mit- tember and December of that year, it managed
a labour dispute that igate the consequences of the fact that it had to push crude oil output up from less than
caused production to dip spent nearly a decade powerless to avoid being 100,000 barrels per day to more than 1mn bpd
in December. embroiled in the civil war that erupted after the following the signing of ceasefire agreements
ouster of the country’s long-time ruler, Moam- between Libya’s two main armed factions, the
WHY: mar Qaddafi. In some cases, those consequences Government of National Accord (GNA) and
The postponement of were downright ruinous, as they involved oil the Libyan National Army (LNA).
presidential elections
has led to increased production, transport and refining infrastruc- For the most part, these rebuilding efforts
uncertainty. ture being seized or damaged by one armed remained on track over the course of the year.
faction or another. In other cases, meanwhile, There were hiccups, including strikes by unpaid
WHAT NEXT: the consequences were negative in less obvious workers that led to temporary shutdowns
More labour unrest and ways, such as the accumulation of wear and tear of crude oil and natural gas production and
political disputes seem that might normally be addressed by regular exports and the breakdown of overtaxed infra-
likely in the near term. preventative maintenance. structure systems.

P4 www. NEWSBASE .com Week 02 12•January•2022