24 Hrs
Source:
عين ليبيا
Libya's Oil Plan Faces Funding Delay
Libyan plans to increase crude oil production to two million barrels per day over the next three years have faced a major obstacle related to financing mechanisms. Specifically, credit facilities valued at one billion dollars allocated for this purpose remain unused to date, due to delays in due diligence procedures and legal requirements involving the projects and participating companies. These facilities, linked to the Libyan Foreign Bank, aimed to fund the upgrade of oil infrastructure, expand storage capacities, and restart halted wells, with the potential to add between 250,000 and 270,000 barrels per day within 18 months. However, verification procedures, disagreements over disbursement mechanisms, and postponements in utilization have hindered the project's implementation, despite the critical importance of this funding to achieve the target of reaching two million barrels daily. Oil revenues are the primary source of the country's income, having exceeded approximately $15.8 billion since the beginning of 2026. Libyan officials seek to modify the financing approach so that part of it is disbursed directly in cash, rather than relying solely on letters of credit. This aims to enhance the institution's capacity to implement projects and reduce dependence on emergency funding from the Central Bank, from which about $12 billion had been received between 2022 and 2025. If the facilities are successfully activated, they could significantly boost production within 18 months, representing an important step toward reaching the ultimate goal.
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