LIBYA: NOC achieves $4,32B in net revenues for the months of November and December

The National Oil Corporation (NOC) has announced that the net revenues for the months of November and December of the year 2021, for sales of crude oil, gas, condensate, petroleum and petrochemical products have reached record levels, driven by a boom in prices around the world, where the net revenue during the two months amounted to 4,321,675,360.58 US dollars, detailed as follows: –

In November, the NOC achieved $1,968,156,900.26 worth of crude oil, followed by gas and condensate, which amounted to $92,335,279.02. While the net revenues of petroleum products amounted to 46,093,437.43 US dollars, and petrochemicals revenues amounted to 4,489,025.22 US dollars. To bring the total net revenues for the month of November to 2,111,074,641.93 US dollars.

While December enjoyed the highest revenues achieved throughout the year, as crude oil revenues amounted to 1,985,950,976.38 US dollars, followed by gas and condensate revenues with 120,369,471.38 dollars, then petroleum products revenues with 101,306,516.64 US dollars and petrochemicals revenues with 2,973,754.25 dollars. The total revenue in the month of December reached about 2,210,600,718.65 US dollars.

Mustafa Sanalla commented: “The end of the year 2021 recorded a recovery, and oil prices achieved their largest annual gains since 2016, driven by the recovery of the global economy from the state of stagnation due to the Corona epidemic. It is expected to continue to rise unless the market fundamentals change and global investment upstream and downstream increases.”

In this regard, the Chairman of the Board of Directors stressed that the ability of the oil sector in Libya to invest and advance the process of infrastructure modernization will remain weak in the foreseeable future, especially in light of the scarcity of budgets, and stressed that what Libya needs more than ever is to think outside the box and create initiatives to save the infrastructure. And push the wheel of investment in the national oil sector, as it is almost the only financier of the public treasury.

In a related context, Mr. Mustafa Sanalla added, “The country’s decision-making departments must address the idle and damaged budgets, and not turn a blind eye to the safety of our oil assets and the importance of preserving them, and not to denounce the NOC’s steps in financing oil projects with special arrangements.”

In this regard, the Chairman of the Board of Directors expressed, saying, “The implementation of a package of vital projects, especially the South Refinery and the Cooking Gas Extraction Plant, to enhance production values ​​and the south’s self-sufficiency in fuels requires special arrangements for their implementation and bypassing the bureaucracy that the country suffers from.

Sanalla elaborated, saying.. ‘In the year 2020, the NOC made reservations about direct revenues, royalties and taxes in order to move stagnant water and resume production, so it saved the country from the specter of war and bankruptcy, and as a result we achieved financial surpluses during the year 2021. Were it not for these steps imposed by circumstances, the public treasury would now be empty, the deficit controlling the budget, and the central bank’s reserves at their lowest levels. In the coming days, we will list on our official page a number of facts with figures and indicators that do not go beyond what the oil sector suffers from, which has supported the Central Bank’s reserves of hard currency for decades.

In addition, Sanalla said, “The winners from investing royalties and taxes in the oil sector are the Libyan people, and the NOC reassures the entire Libyan people that it is the faithful guardian of the country’s oil wealth.”

This gives workers in the oil sector good news that as a result of the reservation on revenues, a surplus in income was achieved from September 2020 when force majeure was lifted until December 2021, about 23,718,222,282.40 US dollars. And 33,157,083.82 euros net general revenue for the year 2021.

The total net revenues achieved during the past year amounted to 21,555,396,675.07 billion US dollars and 30,098,669.01 euros, while royalties and taxes have been recorded since the lifting of force majeure in September of the year 2020 until December 31, 2021, an amount and capacity of 2,275,850,786.95 US dollars and it was deposited in the account of the Ministry of Finance with the Central Bank of Libya, provided that royalties and taxes will be withheld in the coming months for the South Refinery and infrastructure projects in accordance with the decisions of the Council of Ministers in particular.

NOC says that the revenues do not include the value of shipments of crude oil that were transferred to the Ubari station, and their value is charged to the General Electricity Company. It also does not include the value of supplying Mellitah Company with quantities of crude oil for the purpose of generating electric power, which are charged to the company to be settled later.

The NOC continues to announce oil revenues in all transparency, in line with its principles of disclosure and transparency, which it has always pursued since January 2018, and has continued to work to this day.