Libya seeks up to USD 40 billion to unlock oil and gas potential

International Finance Business Desk — Thu, 20 Aug 2026 03:00:18 +0000

Libya is seeking between USD 30 billion and USD 40 billion in investment to develop its oil and gas resources, modernise ageing infrastructure and raise crude production to two million barrels per day by 2030, as the North African producer attempts to restore its position in global energy markets.

Masoud Suleman, chairman of Libya’s National Oil Corporation (NOC), said the North African country had significant untapped resources and more than 60 discovered oil and gas fields that had yet to be developed. Libya currently produces about 1.4 million bpd and holds Africa’s largest proven crude reserves, estimated at about 48 billion barrels.

The investment drive comes after years of political instability, conflict, export blockades and underinvestment following the 2011 overthrow of Muammar Gaddafi. Libya remains divided between rival authorities in the east and west, while armed groups continue to influence parts of the country. Many of its major oilfields and export terminals are located in areas controlled by eastern military commander Khalifa Haftar.

Security risks remain a major obstacle. A recent drone attack on the Zawiya refinery damaged fuel storage facilities and disrupted operations, while an attack on a nearby power substation caused outages. US company GE suspended work at a nearby power plant and withdrew technical teams because of security concerns.

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The NOC is seeking to make projects more attractive to international investors by reconsidering its existing production-sharing agreements. Under the current model, the state oil company is required to finance part of development costs, potentially delaying projects when government funding is unavailable. Suleman said Libya was considering concession-style agreements or revised production-sharing terms that would allow international partners to shoulder more upfront costs.

Foreign energy companies are already showing renewed interest. Libya has awarded exploration blocks to companies including Chevron, Eni, QatarEnergy and Repsol, while a recent agreement with Qatar-based UCC Holding for Area 47 is expected to attract about USD 1 billion in investment.

Libya is also expanding its role in regional energy trade. In 2026, its crude began flowing to Nigeria’s Dangote Refinery, with Nigeria importing about 64,500 bpd of Libyan crude in May, according to the supplied reports.

Europe remains an important market for Libyan crude because of the country’s proximity to Mediterranean refiners and its light, low-sulphur oil. However, attracting the scale of investment required to reach two million bpd will depend on improving security, governance and the reliability of the country’s investment framework.

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Libya seeks up to USD 40 billion to unlock oil and gas potential