Key facts
- Libya seeks $36-$40 billion in foreign investment to raise oil output to 2 million bpd by the early 2030s.
- The country's parliament has passed a unified budget, allocating $2 billion to the National Oil Corporation (NOC).
- NOC has resumed oil tenders after a 17-year pause, attracting major international oil companies.
- Companies like Repsol, Eni, QatarEnergy, BP, Shell, Exxon, and Chevron are returning to Libya.
- Despite stabilization, oil fields and infrastructure remain targets for attacks.
Libya is seeking substantial foreign investment to significantly increase its oil production, aiming for 2 million barrels per day by the early 2030s. The National Oil Corporation (NOC) estimates a need for $36 billion to $40 billion to achieve this ambitious goal, which is crucial for the country's economy heavily reliant on oil revenues.
The passage of a unified budget by Libya's parliament, which includes a $2 billion allocation for the NOC, has bolstered confidence in attracting foreign capital. NOC chairman Masoud Suleman stated that the era of delayed funding is over, making the country more appealing to investors. This financial stability has coincided with the NOC's efforts to revive its exploration and production activities.
After nearly two decades of inactivity due to civil war, the NOC resumed oil tenders last year. This has led to the signing of exploration and production-sharing agreements with several international companies, including Repsol, Turkish Petroleum, Eni, QatarEnergy, and MOL, in what marks the country's first major licensing round in 17 years. Major players like BP, Shell, Exxon, and Chevron are also returning to Libya as the security situation gradually improves.
However, the path to increased production is not without challenges. Libya's oil fields and infrastructure remain vulnerable to attacks, with the NOC recently declaring force majeure on an oil export terminal following drone strikes. This highlights the ongoing security risks that could impact the country's ability to meet its production targets.