Libya’s National Oil Corporation (NOC) has announced plans to launch its first bidding round for oil exploration in more than 17 years.
The acting chairman of the state owned company, Masoud Suleman, disclosed this in a televised address on Monday, stating that the move aims to attract foreign investment and boost production.
This marks a significant step for the North African country, which has struggled to attract investors due to ongoing political instability.
Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), holds Africa’s largest oil reserves, but repeated conflicts between rival factions have hindered exploration and production.
Libya’s oil sector has been largely unstable since the fall of Muammar Gaddafi in 2011.
Armed groups frequently clash over control of oil revenues, leading to production shutdowns.
In August 2023, the country lost about 700,000 barrels per day (bpd) in output, with exports halted as political disputes threatened to derail four years of relative peace.
Production only began recovering in October.
Despite these challenges, international oil companies such as Eni, OMV, BP, and Repsol resumed exploration activities in Libya last year after more than a decade of inactivity.
In 2023, Italy’s Eni signed an $8 billion gas production deal with NOC, signaling renewed interest in the sector.
Libya’s National Oil Corporation (NOC) reports that the country’s crude oil output has surpassed 1.4 million barrels per day (bpd), closing in on its pre-civil war levels by just 200,000 bpd.
In January, acting Oil Minister Khalifa Abdulsadek mentioned that the country needs between $3 billion and $4 billion in investment to boost production to 1.6 million bpd.
While Libya remains exempt from OPEC+ production limits, experts suggest that political stability will be key to sustaining growth in its oil sector.
Suleman added that the government is committed to ensuring a stable investment climate to encourage long-term partnerships.
