Decision No. 355 of 2023 on Allocation of Funds from Miscellaneous Budget Item

The GNU's Cabinet allocated LYD 12 million from the miscellaneous line item of the 2023 state budget to the Ministry of Oil and Gas for operational expenses. The Ministry of Finance and Planning is tasked with implementation, effective from September 29, 2023.

This decision signals liquidity constraints within Libya's oil sector administration, requiring resort to discretionary budget allocations for basic operations. For IOCs and service companies, this reflects the ongoing cash flow management challenges facing even the Ministry of Oil and Gas, despite Libya's oil revenue position. Contractors should anticipate potential payment delays or bureaucratic friction as ministries compete for limited discretionary funds. The use of miscellaneous allocations rather than direct budget lines also suggests limited forward planning or budget overruns in the oil ministry.