Libya’s Oil Revenues Sink to $6.95bn in H1 2023

Emmanuel Addeh in Abuja

Libya’s revenues from crude oil in the first half of the year fell to $6.95 billion (33.4 billion Libyan dinars)—down from 37.3 billion dinars in H1 2022, according to a statement from Libya’s central bank.

Libya’s crude oil production in the first part of this year is higher than it was during the same period last year. In Q1 2023, Libya’s crude oil production averaged 1.157 million bpd, according to OPEC’s secondary sources, rising only slightly to average 1.169 million bpd by May of this year.

This is an increase on 2022, when 1st quarter production averaged 1.063 million bpd, with May 2022 production averaging just .707 million bpd, oil price reported.

But Brent crude oil prices are down nearly $30 per barrel from May 2022 to May 2023. Libya relies on oil for almost all of its exports and fiscal revenues.

Last month, the Government of National Stability in Libya said it would stop the flow of oil and gas unless the western-based Government of National Unity appointed an eastern-government representative to oversee the National Oil Corporation (NOC). Meanwhile, Libya is struggling to attract foreign investment into its oil sector.

Meanwhile, Shell expects its gas trading business to have been significantly lower in the second quarter, compared to a strong first quarter, due to seasonality and fewer optimisation opportunities, the UK-based supermajor has said in its second quarter 2023 update note.

Shell anticipates the second-quarter contribution of the gas trading division to be in line with the average contribution of the second quarter in 2021 and 2022.

For the first quarter, Shell reported adjusted earnings of $9.6 billion, driven by “strong trading and optimisation margins for gas and power due to continued price volatility primarily in European and American markets.”