Libya Seeks $30-$40B Investment to Reinvigorate Oil Sector and Reach 2M Barrels/Day Target BODY: Tripoli, Libya – The Libyan National Oil Corporation (NOC) is on a quest to inject up to $40 billion into its struggling oil and gas sector.
The investment is aimed at unlocking the country’s vast untapped resources, modernizing its aging infrastructure, and reactivating discovered fields. This drive for financial support coincides with Libya’s efforts to rejuvenate an industry that has been decimated by years of political unrest, lack of investment, and security threats. Libya, boasting Africa’s largest proven crude oil reserves of around 48 billion barrels, has long been a pivotal player in the global oil market, particularly in European markets.
Historically, its light, low — sulphur crude, coupled with its Mediterranean location, made it a preferred supplier to European refineries. Notable consumers of Libyan oil have included Italy, Germany, Spain, France, Greece, and the Netherlands. Prior to the 2011 uprising that overthrew Muammar Gaddafi, Libya’s oil production topped 1.
6 million barrels per day (bpd).
However, the subsequent instability and infrastructure disruptions have led to fluctuating production levels.
The NOC currently produces around 1. 4 million bpd and aspires to reach a target of 2 million bpd by 2030.
The NOC identifies over 60 undeveloped oil and gas fields, presenting a golden opportunity for international energy companies to invest in exploration, production, and infrastructure. To lure in more capital, Libya is contemplating reforms to its investment framework, which may include alterations to production-sharing agreements that currently demand the state oil company to shoulder a portion of development costs.
The proposed changes would shift more of the financial burden to international investors, facilitating faster project progression. Libya’s foray into Africa’s growing regional energy trade is also gathering pace, as seen with its crude oil entering Nigeria’s Dangote Petroleum Refinery in 2026. Global players like Eni, TotalEnergies, Chevron, and ConocoPhillips have shown sustained interest in Libya’s oil and gas industry.
However, investment has been stymied by political uncertainty, governance issues, and security risks. Despite these challenges, Libya has secured new investment deals, including a July agreement with Qatar-based UCC Holding for exploration and production in Area 47, a project expected to attract about $1 billion in investment. Yet, Libya’s aspirations face significant hurdles.
The country’s oil sector is mired in political divisions, with east and west authorities vying for control over major oil fields and export terminals. Security concerns have also taken a toll on investor confidence, as evidenced by recent drone attacks on the Zawiya refinery. Economic pressures, such as fuel subsidies and the import of smuggled fuel, further strain the country’s finances and complicate the reform efforts of its energy sector.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: Olamilekan Okebiorun
