Libya on Monday voiced a strong commitment to renewing previous agreements with Türkiye, seeking to finalize a free trade deal and boost investments with its largest commercial partner.
The North African country is looking to diversify its economy beyond oil and considers Türkiye as a strategic partner in achieving sustainable development, its Economy and Trade Minister Mohamed Al-Hwej said.
Libya has Africa’s most abundant hydrocarbon reserves but is struggling to recover from years of conflict after the 2011 NATO-backed uprising that overthrew longtime dictator Moammar Gadhafi.
It has since been split between a U.N.-supported government in the capital, Tripoli, and rival authorities based in the east. Each side has been backed by different armed groups and foreign governments.
There have been frequent blockades of oil installations, often because of social demands or political disputes. Al-Hwej’s remarks came on the sidelines of the Libya Energy and Economic Summit in the capital city of Tripoli.
“This summit is about energy because we know there is no economy without energy. Whether it’s transportation, industry, agriculture or services, energy forms the backbone of economic activity,” he told Anadolu Agency (AA). Türkiye has been a significant supporter of Libya and its Tripoli-based Government of National Accord (GNA).
The two states saw closer ties in recent years, especially after the signing of security and maritime boundary pacts in late 2019, along with Ankara’s aid to help the legitimate U.N.-backed Libyan government push back putschist Gen. Khalifa Haftar’s forces.
The deal over the Eastern Mediterranean demarcated the countries’ shared maritime borders to prevent any fait accompli by regional states. The two countries also signed an energy exploration agreement in October 2022 to explore hydrocarbons in Libya’s exclusive economic zone and the mainland by Türkiye.
Highlighting Türkiye’s successful economic model, the minister added, “Türkiye’s experience is one of the best in the short term, and we hope to benefit from this expertise.”
The minister described Türkiye as Libya’s top commercial partner, noting that Ankara’s role extends beyond trade. “We now see Türkiye as a strategic partner in every sector, including infrastructure, the petroleum industry, services, energy, health care and economic development,” he said.
FTA talks to resume
The minister revealed that Libya is preparing to renegotiate and renew previous agreements with Türkiye, with the goal of reaching a free trade agreement (FTA) and promoting investment. “We recently met with the Turkish trade minister. We now aim to finalize a free trade agreement, encourage investments and update all prior agreements and memoranda of understanding,” he stated.
Libya and Türkiye, both members of the Organisation of Islamic Cooperation’s Standing Committee for Economic and Commercial Cooperation (COMCEC), are also working to finalize a double taxation avoidance agreement. “We have already presented a comprehensive project on this, and it is close to being signed,” Al-Hwej said, adding that a project for free trade and exemption from double taxation was also proposed.
“We will meet with Türkiye’s trade minister and other relevant ministries to finalize this free trade agreement between Libya and Türkiye, overcoming all challenges between the two countries,” he said.
‘Long-term strategic partner’
The minister stressed the importance of removing barriers to trade and facilitating private-sector partnerships. “Libyan businessmen and the private sector prioritize Türkiye because they see it as a key player in Libya’s next phase of economic development. We consider Türkiye a long-term strategic partner,” he added.
The minister emphasized that Libya’s strategic location as a gateway between North and South, East and West, combined with its vast energy resources, positions energy as a cornerstone of the national economy. “We are prioritizing Türkiye within the framework of previous agreements and memoranda of understanding,” Al-Hwej said.
“Turkish companies are welcome to participate not only in exploration activities but also in the downstream sectors such as refining and petrochemicals. As the Ministry of Economy, we are committed to providing all possible legal facilitations for these partnerships,” he said.
Al-Hwej said Libya prioritizes partnership with Türkiye “because of our long shared history.” The minister expressed confidence in Libya’s economic trajectory. “Libya is undergoing a rapid transition toward sustainable economic growth. In this environment, we expect our growth rate to surpass that of other Mediterranean countries. We will take practical steps toward these goals,” he concluded.
TPAO eyes opportunities in Libya
Separately, Turkish Petroleum Corporation’s (TPAO) top executive said the state energy company is ready to invest in Libya’s energy sector, banking on the country’s vast untapped resources. Speaking on the sidelines of the Libya Energy and Economic Summit (LEES) 2025 in Tripoli, General Manager Ahmet Türkoğlu underscored TPAO’s renewed interest in Libya as part of its global expansion strategy.
“We are here because we see great potential,” Türkoğlu said on Sunday, citing the North African nation’s ambition to boost oil production to 2 million barrels per day. “I am sure Libya will achieve much more.” Oil production in Libya had hovered for a decade at around 1.2 million barrels per day but rose to 1.4 million barrels per day in early December. Pre-uprising output was between 1.5 million and 1.6 million barrels per day.
Türkoğlu reiterated Ankara’s confidence in Libya’s energy prospects, stating that TPAO is ready to commit significant investments. “In the past, we invested but unfortunately had to leave. Now, we plan to rebuild relations and are ready to invest billions of dollars in this great potential,” he said.
He highlighted Libya’s offshore energy sector as a promising area for exploration and development, describing existing fields and brownfields as holding immense opportunities. “We believe in offshore potential. Current fields and brownfields have great opportunities for investment. We are ready to invest in this potential,” he noted.
Türkoğlu also said TPAO is prepared to secure contracts for both new exploration blocks and existing ones to enhance their performance and efficiency.
Transparency in Libya’s energy market
Türkoğlu emphasized the importance of competition and transparency in Libya’s energy market to attract foreign investment. “We need to create a win-win environment where both Libya and investors can thrive,” he said, stressing the need for improved sustainability, predictability, and financial compliance.
He pointed out challenges faced by foreign investors in Libya, calling for straightforward, competitive, and transparent market access to allow for broader participation and contribution to Libya’s economic growth. Despite obstacles, Türkoğlu expressed optimism about Libya’s energy future, provided a balanced environment benefiting both the country and its investors is established.
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