Libya needs to boost oil output by 40% to cover spending: Al-Kabir

The Governor of the Central Bank of Libya (CBL), Al-Siddiq Al-Kabir, has told Bloomberg in an interview from Tripoli that Libya needs to increase oil production by 40% to cover spending and revamp economy.

Al-Kabir added on Sunday that Libya’s gold reserves stand at 116.6 tons, saying the Libyan oil production should be boosted to 1.8 million barrels per day (bpd) in 2022.

“CBL is working with the National Oil Corporation and will use the surplus of the budget, if oil prices remain stable, to upgrade the oil facilities and infrastructure in the country.” He said.

Libya’s top banker indicated that he is committed to unifying the CBL after the international auditing is complete, adding that he is now discussing proposals to that end, referring as well to the negative impact of the Coronavirus pandemic on the Libyan economy.

Al-Kabir said that after unifying the currency exchange rate in last January, Libyans and companies became more secure regarding the dinar.

“Libya won’t get funds from abroad neither in the short nor in the medium terms.” He said.

He told Bloomberg that Libya’s domestic debt is very hazardous and stands at 270% of the Gross domestic product (GDP), saying that the CBL is working to allow creditors to continue to pour in cash on a daily basis.

Bloomberg said the CBL expects oil revenue to reach 25 billion dollars this year amid the relative calm after the ceasefire in Libya.

“This would be a good increase from the 3.6 billion dollars in 2020, when the offensive on Tripoli blocked oil production and shut many facilities.” Bloomberg said.


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