Libya expects to raise more than $20 billion in revenue in 2019, with production running at around 1.25 million barrels per day, the company’s chairman Mustafa Sanalla said at a conference in Tunis.
The plan is for 2020 to be a “transformative year for NOC and Libya”, he said. There are a number of aspects to the scheme, which should see production increase to 1.5mn bpd in 2020 and 2.1mn bpd by 2024. Gas output by that point should be 3.5 billion cubic feet (99 million cubic metres) per day.
NOC also intends to launch a charter for its values and implement a “4D security plan”, covering transparency, engagement with communities and restricting criminal gangs’ ability to carry out fuel smuggling and other sources of revenue raising. Sanalla set out plans for an “endowment fund”, under which communities hosting oil production would receive payments linked to output volumes.
The strategy set out by Sanalla could “put the country back on its feet. Already we see that hope is beginning to recede in Libya, and if that continues, none of what I have described will happen. All of us, collectively, internationals and Libyans, have to believe, to commit and to unite.”
The plan to increase output to 1.5mn bpd in 2020 comes through the addition of 350,000 bpd of output, allowing for a decline rate of 7-8%. This will cost $1.2 billion and will be carried out through workovers, infill drilling, artificial lift, power generation plans and repairs of infrastructure.