As the 2021 budget approval continues to be delayed: AGOCO about to shut down activity due to lack of funds

By Sami Zaptia.

London, 30 August 2021:

One of Libya’s biggest oil companies, Arabian Gulf Oil Company (AGOCO) announced last Thursday that it is about to shut down its oil operations due to the lack of funds.

It revealed that it had been continuing its operations despite not being not allocated funds from either the 2020 or the 2021 budget.

The lack of budgetary allocations, it said, has resulted in the accumulation of debts and the inability to acquire spare parts, equipment, operating and production requirements or technical or services contractual obligations at oilfields and sites.

It warned that as a result of the lack of funds it will be forced to suspend all its activities.

It will be recalled that the Abd Alhamid Aldabaiba Libyan government has been engaged in a battle with parliament (the House of Representatives – HoR) for approval of its 2021 budget. With four months until elections are supposed to take place, parliament has raised numerous objections to the budget, including its size and lack of detail.

 

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