The management committee of the Arabian Gulf Oil Company has announced their suspension of all activities in the company, Report informs referring to The Libya Observer.
This is due to the company’s inability to continue carrying out work unless the necessary funds are provided to operate the production process.
The company’s management explained in a statement that they have been conducting business without referral of their due budgets for the year 2020 and 2021 and without monetizing the necessary funds required to carry out the work, despite continuous promises to provide the budget. This has led to the accumulation of debts and financial obligations.
The company also indicated that they are unable to provide the necessary spare parts, equipment, and operating and production requirements, adding that there is an inability to continue the technical or service lined out by contractual obligations, which is associated with the presence of workers in the company’s fields and sites.
Libya’s crude oil production averaged 1.165 million barrels per day in July, up from 1.163 million barrels per day in June, according to OPEC’s monthly oil market report.
In November 2020, oil production in Libya returned to the pre-war level - more than 1.2 million barrels per day. In the long term, the National Oil Corporation plans to increase oil production to 2.1 million barrels per day.