Al-Shalawi: Libya’s September Oil Sector; Strong Production and Revenues Exceeding $2.86 Billion

Oil expert Monsef Al-Shalawi wrote:

Data from the National Oil Corporation (NOC) reveal that significant levels of oil and gas production continued throughout September 2026. However, these figures should not be viewed solely in terms of production volumes, but also in terms of how these resources are utilized and transformed into sustainable economic value.

Crude oil production reached approximately 40.23 million barrels in September, averaging around 1.34 million barrels per day. The Libyan state’s share amounted to approximately 31.34 million barrels, compared with 8.98 million barrels allocated to partners.

Of the state’s share, approximately 27.57 million barrels were allocated to crude oil, 3.32 million barrels to refineries, and around 445,800 barrels to power plants.

These figures demonstrate that a Libyan barrel of oil is not merely an export commodity. It is part of an integrated system that includes exports, the provision of foreign currency, supplying refineries, generating electricity, and financing the national economy.

The average price of crude oil in August was approximately $90.837 per barrel, a level that provides significant support for revenues. However, the real equation remains linked to volume, price, marketing efficiency, and collection—not price alone.

$2.86 Billion Transferred to the Sovereign Account

On the financial side, the data show that approximately $2.863 billion was transferred to the sovereign account at the Libyan Foreign Bank during September, while royalties and taxes from concession agreements amounted to approximately 2.001 billion Libyan dinars.

Here, a distinction must be made between the value of production and the revenue that actually reaches the state, given partners’ shares, costs, contractual obligations, royalties, and taxes.

Therefore, the most important economic question is not simply: How much did we produce? It is also: How much did we sell? At what price? How much actually reached the state? And what value remained within the Libyan economy?

Gas… A Resource That Goes Beyond Electricity

Natural gas production reached approximately 76.01 billion cubic feet in September, of which around 75.20 billion cubic feet was available for consumption.

Weekly data for the period from September 27 to October 3 show domestic consumption of approximately 7.97 billion cubic feet. The General Electricity Company of Libya accounted for approximately 6.634 billion cubic feet, or around 83%.

The National Oil Corporation consumed approximately 602 million cubic feet, steel and iron factories consumed around 635.8 million cubic feet, and cement factories consumed approximately 97.5 million cubic feet.

These figures confirm that gas is a vital lifeline for electricity and industry in Libya, and that any disruption in its production or transportation affects not only the oil sector but also electricity, industrial production, services, and the economy as a whole.

The data also recorded consumption of approximately 45,420 tons of diesel and nearly 967 tons of fuel oil during the week, further highlighting the importance of expanding the use of gas and improving the efficiency of the energy system.

From Crude Oil Exports to Building a Productive Economy

The figures above point to an issue that extends beyond the results of a single month.

Libya has oil production exceeding 1.3 million barrels per day, substantial gas resources, and a geographic location close to European markets. Nevertheless, the real challenge remains maximizing the added value generated from these resources.

The goal should not simply be to increase oil and gas production, but to utilize them to develop refineries, petrochemicals, fertilizers, iron and steel, and manufacturing industries, while transforming gas from merely a fuel for electricity generation into a key input for industrial development.

Maintaining production stability and protecting oil transportation pipelines and oil facilities have also become matters of national economic importance. A production shutdown does not merely mean losing barrels; it also means losses in revenues, foreign currency, investment, and market confidence.

Conclusion

September’s data reflect a sector capable of producing more than 40 million barrels of oil and 76 billion cubic feet of gas per month, while generating significant financial inflows for the state.

However, the true value of this wealth should not be measured solely by what we produce and export, but by what we are able to build around it as an economy.

The objective should not be:

Oil production → exports → revenue collection

But rather:

Sustainable production → added value → industry → jobs → non-oil exports → a more diversified Libyan economy that is less dependent on crude oil.

At that point, oil and gas become a means of building the Libyan economy—not the economy itself.