A subsidiary of Libya’s state-owned National Oil Corp (NOC) said on Sunday it had signed a contract with U.S.-based Honeywell (HON.O) for engineering work on the planned South Refinery project, likely to cost between $500 million and $600 million. NOC subsidiary Zallaf For Oil And Gas Co said in a statement the project would be carried out in two phases but did not issue a schedule for works. NOC has previously said South Refinery will produce cooking gas, jet fuel, and other products, including 1.4 million liters a day of petrol and 1.1 million liters a day of diesel. Read more from Reuters.
As part of the Global Fragility Act, the US government has released to Congress a 10-year strategic plan to prevent conflict and promote stability in Libya. The plan focuses on four main pillars: political reconciliation, security sector reform, economic reform and the provision of essential services, and the promotion of human rights and the rule of law. The plan aims to support Libya’s efforts to achieve a durable and inclusive political solution to the ongoing conflict, which includes promoting human rights and accountability, addressing the root causes of the conflict, and supporting the building of resilient institutions. The US government also pledged to work with Libya’s neighbors and international partners to implement this strategy. Read more about the strategy here.
Libya will be ready to hold an oil and gas licensing round next year, Libya’s state-run oil company chief said at CERAWeek, according to Argus. If Libya does manage to hold a licensing round next year, it would be its first in nearly two decades and would help Libya reach its production goal of 2 million barrels per day within the next three years. Libya’s crude oil production in January fell to 1.148 million bpd, after averaging 1.153 million bpd in the fourth quarter of last year, OPEC data showed in its latest Monthly Oil Market Report. Libya has made some progress in paving the way for boosting gas production, including signing an $8 billion offshore gas deal with Eni, and Eni’s and BP’s exploration drilling plans in the Ghadames and Sirte basins—with offshore drilling planned for next year. Read more from Oil Price.
The Governor of the Central Bank of Libya, Saddek Elkaber, has concluded the meetings of Article IV consultations with the IMF in the presence of the President of the Libyan Audit Bureau and the Ministers of the Government of National Unity. During the meetings, the attendees discussed economic and financial policies that will be implemented in the coming year, including the state budget, balance of payments, and exchange rate. The Governor emphasized the importance of developing a comprehensive and realistic budget that takes into account the challenges facing the country and the needs of its citizens. He also stressed the need for close cooperation and coordination between all government bodies to ensure the success of the economic reform program. The Governor expressed his gratitude to all participants for their valuable contributions to the discussions, and he pledged to continue working closely with all stakeholders to strengthen the country’s economy and promote sustainable development. Read more from the Central Bank.
Successive U.S. Administrations have sought to prevent Libya from serving as a permissive environment for transnational terrorist groups and have taken different approaches to conflict and competition among Libyans. The Biden Administration supports the holding of new elections in Libya and has used U.S. influence to bolster U.N.-led mediation efforts to that end. Congress has appropriated funds to enable U.S. diplomacy and aid programs, and some Members have called for more assertive U.S. engagement. The postponement of planned elections in 2021, Libyans’ continuing lack of consensus over constitutional and legal arrangements, the potential fragility of a United Nations (U.N.)-backed ceasefire, and the re-emergence of institutional rivalry are prolonging Libya’s instability and pose challenges for U.S. decisionmakers. Read more from the US Naval Institute.