US government report on Libya
Oil export revenues, which account for over 95% of Libya's hard currency earnings (and 75% of government receipts), were hurt severely by... reduced oil exports and production -- in part as a result of US and UN sanctions. With higher oil prices since 1999, however, Libyan oil export revenues have increased sharply, to $18.1 billion in 2004 and a forecast $19.4 billion in 2005, up from only $5.9 billion in 1998. Even with increased oil export revenues, Libya's budget remains highly vulnerable to fluctuations in oil prices.
Overall, Libya would like foreign company help to increase the country's oil production capacity from 1.60 million bbl/d at present to 2 million bbl/d by 2008-2010, and to 3 million bbl/d by 2015. In order to achieve this goal, and also to upgrade its oil infrastructure in general, Libya is seeking as much as $30 billion in foreign investment over that period.
The lifting of U.N. and U.S. sanctions, along with possible changes to Libya's 1955 hydrocarbons legislation (the country is drafting a new hydrocarbons law to cover all types of contracts), is likely to prove extremely helpful in boosting the country's oil output. Sanctions had caused delays in a number of field development and Enhanced Oil Recovery (EOR) projects, and had deterred foreign capital investment to a significant extent. Also the full lifting of sanctions is important for Libya's oil industry since U.S. companies are leaders in advanced oil and gas technologies, many of which they have under patent.

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