Libya’s Arabian Gulf Oil Co (AGOCO) will stop operations unless it receives its budget allocation for 2020 and 2021, it said in a statement late on Thursday, without giving a timeline for the stoppage.
AGOCO suspended production in April due to the ongoing budget dispute, forcing National Oil Corp (NOC) to declare force majeure on exports through Hariga oil terminal, leading Libyan output to drop by 300,000 barrels per day.
In April, NOC said the government would allocate 1 billion dinars ($225 million) as part of an agreement reached to end the force majeure.
The Government of National Unity, installed in March, has not been able to push its 2021 budget through the eastern-based House of Representatives.
Photo: File photo of a Libyan oil terminal on the Libyan coast . EPA/MAURIZIO GAMBARINI