Libya’s Oil Revenues Sink to $6.95 billion in H1 2023

Libya’s revenues from crude oil in the first half of the year fell to $6.95 billion (33.4 billion Libyan dinars)—down from 37.3 billion dinars in H1 2022, according to a Thursday statement from Libya’s central bank.

Libya’s crude oil production in the first part of this year is higher than it was during the same period last year. In Q1 2023, Libya’s crude oil production averaged 1.157 million bpd, according to OPEC’s secondary sources, rising only slightly to average 1.169 million bpd by May of this year. This is an increase on 2022, when 1st quarter production averaged 1.063 million bpd, with May 2022 production averaging just .707 million bpd.

But Brent crude oil prices are down nearly $30 per barrel from May 2022 to May 2023. Libya relies on oil for almost all of its exports and fiscal revenues.

Those revenues have been the subject of controversy among the country’s multiple governments. Earlier this week, the leader of the Libyan National Army, General Khalifa Haftar, threatened to use force unless the country’s political leaders agreed on a way to distribute oil revenues fairly, citing a deadline at the end of next month. Haftar has proposed setting up a committee to distribute revenues from oil, most of which is produced in eastern Libya. If the authorities fail to do that, the LNA will use force to make its argument.

Last month, the Government of National Stability in Libya said it would stop the flow of oil and gas unless the western-based Government of National Unity appointed an eastern-government representative to oversee the National Oil Corporation (NOC). Meanwhile, Libya is struggling to attract foreign investment into its oil sector.