Libya has announced its first bidding round for oil exploration in over 17 years, marking a significant step in revitalizing its energy sector. Masoud Suleman, the acting Chairman of the National Oil Corporation (NOC), made the announcement in a televised address on Monday.
As Africa’s second-largest oil producer and a member of OPEC, Libya has struggled with political instability since the fall of Muammar Gaddafi in 2011. Ongoing conflicts between rival factions have frequently disrupted oil production, deterring foreign investment.
In August 2024, Libya’s oil output was cut by more than half—around 700,000 barrels per day—due to political tensions surrounding the central bank. This led to the temporary shutdown of several key oil ports, with production gradually resuming in October.
Despite these challenges, major international energy companies, including Eni, OMV, BP, and Repsol, resumed exploration activities in Libya last year after a decade-long pause. In 2023, Italy’s Eni had already secured an $8 billion gas production agreement with the NOC.
Libya’s acting oil minister, Khalifa Abdulsadek, stated in January that the country would need an investment of $3 billion to $4 billion to achieve a production target of 1.6 million barrels per day (bpd). Currently, Libya produces over 1.4 million bpd—about 200,000 bpd below its pre-civil war peak.
Libya remains exempt from OPEC+ output restrictions, allowing it to push forward with efforts to expand its oil sector.