Libya to Launch First Oil Exploration Tender in Over a Decade Amidst Production Surge
Libya aims to reach a production level of 1.4 million barrels per day by the end of this year, with targets set at 1.7 million barrels per day by 2027 and 2 million barrels per day by 2028.
Libya is preparing to host its first oil and gas exploration tender since the country’s 2011 civil war, aiming to draw back global oil companies after years of political turmoil and disruptions in production, according to Oil Minister Khalifa Abdul Sadeq. The tender, planned for late 2024 or early 2025, will include both onshore and offshore oil blocks across some of the nation’s key oil-rich basins, including Sirte, Murzuq, and Ghadames.
As an OPEC member with Africa’s largest proven oil reserves, Libya has long attracted the interest of major international oil players. However, persistent instability since the ousting of former leader Moammar Al Qaddafi in 2011 led many oil companies to scale back or suspend their operations in the country. This upcoming bid marks Libya’s first attempt to attract new investment in its energy sector since the last tender in 2007, before the revolution that reshaped the country’s political landscape.
Libya’s oil production has made a significant comeback, reaching more than 1.3 million barrels per day (bpd), its highest level in years. Minister Abdul Sadeq indicated that with continued development and reactivation of assessed oil fields, Libya could increase output to 1.6 million bpd by the end of 2025. Authorities have set ambitious production targets of 1.4 million bpd by year’s end, with a goal to hit 1.7 million bpd by 2027 and 2 million bpd by 2028.
The renewed interest from foreign oil firms also suggests increased confidence in Libya’s energy sector. Italy’s Eni and BP recently resumed drilling operations after a decade-long hiatus, and Spain’s Repsol and Austria’s OMV are gearing up to restart drilling in the coming weeks. The government has additionally committed $17 billion for infrastructure improvements, including modernizing facilities and expanding into newly appraised fields, potentially adding an extra 300,000 barrels to daily production capacity.
A New Era for Libyan Oil?
This tender could be a crucial moment for Libya as it seeks to re-establish itself as a reliable oil supplier on the global stage. Discussions are reportedly underway with five international oil companies expressing interest in returning, though Minister Abdul Sadeq did not specify their names. If Libya can sustain stability and deliver on its production goals, the tender may pave the way for more substantial foreign investments and bolster the country’s economic recovery after more than a decade of upheaval.
As Libya rebuilds its oil sector, the world will be watching to see if the nation can reclaim its place as a leading oil producer in North Africa.
