Libya’s Agoco to stop crude output amid budgetary constraints

Oil

The Libyan state-owned National Oil Corporation (NOC) subsidiary Arabian Gulf Oil Co (Agoco) has announced that it is unable to continue crude oil production following a lack of funding that has rendered it unfit to continue meeting its technical or service contractual obligations, Argus reports. Agoco has a total production capacity of around 300K b/d, however it has been forced to cease operations due to not receiving its share of Libya’s 2020 and 2021 budget. The company had also previously declared force majeure on exports from the Marsa el-Hariga terminal and reduced crude production in April following a budget dispute with the Central Bank of Libya, which was eventually covered by the oil and gas ministry.