Tripoli: The National Oil Corporation (NOC) has responded to the Central Bank of Libya’s statement on the decrease in oil revenues for 2024. The NOC attributes a drop of $6.447 billion compared to 2023 to a variety of factors, such as tax and royalty payments from previous years, reduced oil production due to closures, lower Brent crude prices, increased costs of imported fuel, and higher expenses related to fuel supply coverage.
According to Libyan News Agency, the NOC issued a clarifying statement today, addressing the Central Bank’s report on declining oil revenues for 2024. The NOC emphasized that the bank’s statement lacked details about the revenue shortfall and its causes.
The NOC outlined several reasons for the revenue decline. Firstly, $2.4 billion from 2022 was transferred to the public treasury in 2023, representing oil revenues of $718 million and taxes and royalties totaling $1.682 billion from March 2018 to November 2019. These figures pertain to past years’ revenues, not 2023.
Additionally, average oil production in 2024 fell by about 36 million barrels compared to 2023, due to production halts for various reasons. The average price of Brent crude oil also decreased by $1.86 per barrel in 2024 compared to 2023.
Furthermore, the value of fuel supplies from abroad increased by approximately $500 million, prompted by higher demand from major consumers and repeated shutdowns of the Zawiya refinery. This necessitated sourcing alternatives abroad to meet local refining needs. Fluctuating gas production also required substituting diesel to maintain vital operations, adding financial strain on fuel allocations, including the procurement of untreated naphtha for the Ras Lanuf complex’s ethylene plant.
The NOC reported an additional $100 million in expenses for covering local fuel supply in 2023, including $40 million for settling past debts. Natural gas shipments valued at $199 million were also supplied under a Cabinet decision.
Gas settlement allocations for Eni increased by around $447 million in 2024 due to declining gas production and rising domestic consumption, limiting export quantities.
The NOC assured that the revenue decline was not due to mismanagement but rather to uncontrollable circumstances. The corporation reaffirmed its commitment to transparency and openness, inviting media professionals to verify and publish relevant data through official channels in coordination with its media department and spokesperson.