Stability is gradually returning to Libya, and with it foreign corporations
The possible resumption of oil development in Libya was recently announced by Shell, the second largest oil producer in North Africa.
The Anglo-Dutch Oil Company did not give a specific timeframe, making the announcement after negotiations with the Libyan National Oil Corporation (NOC). It is known that at the meeting the parties discussed investment issues, the development of oil refineries, and the provision of professional personnel.
This fall, flights with UN Security Council-sanctioned Libya were resumed almost simultaneously by Malta and Egypt. It is possible that following the passenger airlines, the largest air cargo carriers will return to Libya. Perhaps among them will be the private Ukrainian airline ZetAvia, which carries out cargo transportation around the world, with the exception of countries under sanctions and embargoes.
Italy is showing serious interest in rebuilding the Libyan construction industry. This year, nearly twenty construction companies from Italy are participating in the international construction exhibition in Libya. Tunisia recently opened its land border with Libya. Delivery of construction equipment and materials will also require the services of freight carriers.
Libya is the second largest oil producer in North Africa, but oil production and exploration in it was interrupted due to the blockade, which lasted eight months and, according to estimates by the country's Central Bank, cost almost $ 11 billion. According to OPEC sources, oil production in Libya after the lifting of the blockade showed impressive growth, tripling from the 2020 averages, which were low mainly due to restrictions imposed due to force majeure.
International experts predict that Libya is close to recovering production lost during the years of the conflict. Over the years of conflict, Libya's oil production, which stood at about 1.75 million barrels per day, fell by 850,000 barrels per day, as protests and blockades obstructed the export of crude oil through key Libyan ports. Libya's resurgence in the extractive industries is expected to boost the country's growth this year. Libya's GDP will grow 67% this year due to higher oil prices, according to the World Bank.
Tags: shell; libya; zetavia; oil