The National Oil Corporation (NOC) announced that exports of crude oil, gas and condensate, petroleum products and petrochemicals for the month of November 2020 have amounted to US$ 700,421,887.47 with an increase of % 204 from last October.
It is worth mentioning that the revenues of November 2019 were US $ 1,660,115,142.09.
The NOC also pointed out that previous years’ debts of US $ 37,542,524.00 have been collected from Oil Investment Company and the entire revenues are kept in the National Oil Corporation’s accounts at the Libyan Foreign Bank including the entire operations and subsequent settlements.
The Minister of Economy and Industry of Libya’s internationally recognized government, Faraj Bumtari, said during a televised interview for WTV channel and Tabadul Platform:
“The ministry asked the Council of Ministers to intervene, especially following the intervention of the Attorney General’s office whereby we realized that the Libyan Foreign Bank was at risk.”
“We only had 3 options; the first one was resorting to liquidation procedures, while the second option was turning to the Attorney General’s alternative and call for the appointment of a Judiciary Administrator to the bank, which could have put it at reputation risk, and hence a collapse. However, the third option was the intervention of the government based on Act 16 of 1991.”
“Following the publication of the 2005 Act, there has been a full programme of privatization and transfer of the bank’s ownership. However, it has not been completed after the 17 February revolution.”
“We have interfered in order to avoid the bankruptcy of the Libyan Foreign Bank that lost $1.5 billion.”
“If a possible malfunctioning occurs in other banks, we shall undertake action and consider the options.”
“The Central bank must reform other demands that are of crucial importance.”
“We call for battling the parallel market, the inflation, as well as money laundering.”
“The CBL’s governor should enact the foreign exchange oversight.”
“The CBL reduced 2020 budget on the pretext of fighting against corruption. In fact, however, the bank deprived people of their wages.”
“Development spending in Libya dropped significantly after 2012.”
During the 180th Meeting of the Conference of the Organization of Petroleum Exporting Countries (OPEC) that was held via videoconference, on Monday and the 12th OPEC and non-OPEC Ministerial Meeting held via videoconference, on Thursday, the Chairman of the OC’s Board of Directors, Mustafa Sanalla, praised the welcoming remarks of the Heads of delegations participating in the OPEC+ Meeting on Libya’s production resumption and the continued resumption of Libya from production adjustments.
The Meetings assessed the latest oil market developments in terms of supply, demand and stocks and reviewed the conformity levels of the Member Countries participating in the Declaration of Cooperation to the production adjustments.
The Conference agreed to increase the group oil supply by 500 thousand barrels per day starting January 2021 while holding monthly Ministerial Meetings at the beginning of each month to decide on the supply adjustment for the following month.
A total of 23 countries participating in the Declaration of Corporation (OPEC+) had agreed previously to reduce their collective crude oil production by 9.7 million barrels per day starting May 2020 and then adjusted the reduction to 7.7 million barrels per day starting August 2020 and were targeting to adjust the reduction further to 5.7 million barrels per day starting January 2021 but now agreed instead on gradual monthly adjustments of the reductions to support market stability and ensure adequate and timely world oil supplies.
The Conference welcomed the resumption of oil production by Libya and reaffirmed its exemption from the production adjustments as the country is in desperate need for funds to overcome its commercial and social difficulties.
The UN Security Council Committee concerning Libya has granted a humanitarian travel exemption, pursuant to paragraph 16(a) of resolution 1970 (2011), from 1 December 2020 to 31 May 2021, to the following people: Safia Farkash Al-Barassi, Aisha Muammar Muhammad Abu Minyar Qadhafi, and Mohammed Muammar Qadhafi. Under the exemption, they may undertake unlimited travel for humanitarian purposes during the above timeframe.
The committee noted the possibility of extending or renewing the exemption, if the circumstances so require, explaining that any future decision “will take into account the level of information provided” by the Gaddafi family.
The Bank of Commerce and Development clarified in an official statement, Thursday, that the hacking attempt on its system was on its notifications network only and that the situation is now under control.
The bank’s statement also reassured its client that its banking system had not been hacked and that all accounts and balances are secured and safe still.
The instituation called the hacking attempt a desperate miserable scheme by deplorable individuals who aimed to slander the name of the bank and its director with baseless lies and misinformation.
The Bank also stressed that those responsible directly or indirectly the for damages caused, be it moral or physical will be brought to justice and prosecuted for their crimes.
The Libyan Businessmen Council (LBC) welcomed on Wednesday efforts to unify the financial and political institutions inside the country, stressing that the Council fully supports all the steps that could unify and bring together all the fragmented institutions.
The Libyan Businessmen Councilclarified in a statement that the perfect way to solve the country’s problems, particularly economic problems, starts from the cooperation and partnership with the private sector, especially since the the sector’s contribution in the economic lifeof many countries has surpassed 70% of the national production.
The Council called for the amendment of some legislations. It also called for action to establish security and safety in order to make Libya a tax and customs resort.
” The macroeconomic stability is related to the development of the private sector and its involvement in the State’s economic policies, which would contribute toan environment conducive toinvestmentr and economic relief .”
Waha Oil and Gas Company said Thursday that reconstruction plans of Utilities and production facilities in Dahra Fieldare still ongoing.
The company said in a statement that these plans target the rehabilitation of the infrastructure as well as the housing and services facilities, adding that the efforts have resulted in substantial developments.
The plans also include the development of productin units by placing prefabricated oil and gas wells.
According to the statament, this can be made through the design and installation of “Early Production Facilities” in just a few months.
According to a study released by the United Nations Economic and Social Commission for Western Asia (ESCWA), the cost of the conflict in Libya since its outbreak in 2011 exceeds 783 billion Libyan dinars (LYD), i.e. $576 billion according to the official exchange rate.
According to the report, the conflict in Libya has drastically shrunk the economy as reflected in the large decline in gross domestic product (GDP) and in investment rates. Consumption has also decreased owing to the massive return of foreign workers to their home countries and reduced incomes of Libyan citizens.
Foreign trade has been disrupted by a significant reduction of exports in some key products such as oil. However, the impact has been much higher on imports, mainly due to a contraction in the construction and building sectors.
The report further highlights some major factors that have exacerbated economic losses, such as the destruction of capital assets in the oil, construction, agriculture and manufacturing sectors; the decline in oil prices on global financial markets; and the diversion of resources from health care, education and infrastructure to military spending.
The report also notes that the repercussions of the conflict in Libya have spilled over to the economy of neighbouring countries such as Algeria, Tunisia, Egypt and the Sudan, with which Libya has important ties in trade, investment and employment.
The report also warns that the cost of the conflict is set to rise sharply in the absence of a peace agreement in the coming years. According to ESCWA, if the conflict continues until 2025, it may add $462 billion to the total cost estimated today, which would amount to 80% of losses incurred over the past ten years.
“I have previously warned you about the declining socioeconomic conditions in the country and the fact that we expect in one month time, exactly in January 2021, there will be 1.3 million Libyans in need of humanitarian assistance.” The acting UN envoy to Libya Stephanie Williams said Wednesday.
Williams pointed out that one billion US dollars is needed immediately to be invested in the electrical infrastructure in order to avert a complete collapse of the electrical grid in Libya.
“The best way to address your governance crisis is to unify your institutions, to unify your Central Bank which needs to have a board meeting to address the exchange rate crisis immediately.” She said.
She also highlighted that there is a sharp decline in the purchasing power of the Libyan Dinar. The liquidity crisis has fully returned. There is a shortage of cash in circulation.
According to her, there is also a terrible electricity crisis . “I don’t need to remind you of how terrible the electricity shortages were last summer. Because of the terrible corruption and the mis-governance, all over the country,” she pointed out.
The American Chamber of Commerce in Libya (AmCham Libya) hosted a virtual meeting with U.S. Ambassador to Libya Richard Norland and American companies on Tuesday to exchange views regarding the evolving political process in Libya and prospects for improving the business climate for U.S. investment.
Ambassador Norland underscored that the ongoing political process in Libya provided a unique opportunity for Libyan political and economic leaders to achieve these reforms and make Libya a strong and reliable partner for private sector investment.
American companies expressed a strong desire to deploy their technical expertise and financial resources to help rebuild Libya’s infrastructure and economy.
The business leaders emphasized that greater investment in Libya required long-term political stability, transparent economic decision-making, an agreement on long-term revenue management, and a more enabling business environment, including the Central Bank’s timely and consistent approval of letters of credit that Libyan importers require to honor payments to their foreign business partners.
