KEY POINTS
- Libya needs $30 billion-$40 billion to develop its oil and gas resources.
- More than 60 discovered fields remain undeveloped amid funding and security challenges.
- NOC wants to raise oil output from 1.4 million bpd to 2 million bpd by the end of the decade.
Libya’s state-owned National Oil Corporation, NOC, says the country needs between $30 billion and $40 billion in new investment to develop its largely untapped oil and gas resources, expand production and strengthen its position as a reliable global energy supplier.
The funding requirement comes as Libya seeks to revive an energy sector that has been severely affected by years of political instability, armed conflict, infrastructure problems and disruptions to oil production.
The North African country has Africa’s largest proven crude oil reserves, yet a significant portion of its discovered resources remains undeveloped because of security concerns and a lack of investment.
NOC chairman Masoud Suleman said Libya has substantial untapped resources that require major financial commitments to bring into production.
According to the NOC Chairman, more than 60 oil and gasfields discovered off Libya’s coast have not yet been developed, highlighting the scale of the country’s potential.
The NOC Chiestimated that between $30 billion and $40 billion would be required to develop these resources and upgrade the infrastructure needed to support higher production.
The investment would cover exploration, field development, production facilities, pipelines and other infrastructure required to bring new reserves into commercial production.
Political Instability Continues to Weigh on Investment
Libya’s oil ambitions remain closely linked to its political and security situation.
The country has struggled with instability since the 2011 overthrow of former leader Muammar Qaddafi. Political divisions have left Libya operating under rival centres of power, with an internationally recognised government based in Tripoli and a rival administration in the east.
Powerful armed groups also continue to wield influence across different parts of the country, creating uncertainty for international investors.
Many of Libya’s major oilfields and export terminals are located in areas controlled by military commander Khalifa Haftar and forces aligned with him. Oil infrastructure has previously been affected by blockades and disruptions, creating additional risks for companies considering long-term investments.
Recent attacks have further demonstrated the security challenges facing Libya’s energy infrastructure.
The Zawiya oil complex was attacked by explosive drones last week, triggering fires in several fuel storage tanks and disrupting operations at the facility.
One petrol storage tank containing approximately 4.5 million litres of fuel collapsed after catching fire. No casualties were reported.
The violence also affected the wider energy infrastructure around Zawiya. The South Zawiya power substation was attacked, contributing to a major electricity outage in surrounding areas.
US energy company GE subsequently suspended work at a nearby power plant and withdrew technical teams because of security concerns.
Despite the incidents, Suleman sought to reassure potential investors, saying the attacks were limited to a specific geographical area and were carried out by a small number of individuals the authorities were working to neutralise.
