Libya’s ability to rebuild its oil output will be hindered by ongoing constraints on National Oil Corporation’s (NOC) budget, Chairman of NOC, Mustafa Sanallah explained.
Sanallah said Tuesday that NOC received only 50 percent of its capital expenditure budget from the Libyan government in 2017.
He told a Chatham House conference in London on Tuesday “in terms of investment, we assume that this year, as in 2016 and 2017, political actors will attempt to use control of the state budget process to control NOC.”
“If NOC is lost, Libya will take a long time to be put back together,” Sanallah told the conference, according to Reuters.
Sanallah also indicated that he was hopeful that further blockades in the east of the country would be avoided, expressing faith in the self-styled army which ended a blockade by the forces of Ibrahim Jodran on key export ports in September 2016.
“I don’t believe the LNA and its leadership will now allow the tactics of Jodran to be used under their supervision, especially because of their devastating economic effect.” He said, according to Reuters.
