Rich in hydrocarbons and engaged in reforms deemed attractive, Libya is attracting renewed interest from major energy companies, despite political and security instability that continues to weigh down heavily on investment decisions.
The North African country’s vast oil reserves and recent adjustments to its fiscal and contractual framework are beginning to draw the attention of major international energy companies, according to an analysis reported by Bloomberg.
This momentum comes as the country continues to face high political risks and persistent structural weaknesses in its energy sector.
According to a report by the consulting firm Enverus Intelligence Research, the new licensing round launched by Tripoli covers 22 exploration blocks containing approximately 10 billion barrels of
recoverable oil, in addition to nearly 18 billion barrels yet to be discovered.
These considerable volumes place Libya among the most promising territories in North Africa for oil exploration.
For Tom Richards, regional director at Enverus, this licensing round marks a turning point for a sector long paralysed by instability.
Libyan authorities have notably improved tax conditions, simplified cost recovery mechanisms, and clarified production-sharing agreements—reforms designed to reduce legal uncertainty and make projects more bankable for international investors. This opening, however, remains contingent on external factors that are difficult to control.
The National Oil Corporation, a pillar of the sector, aims to increase national production by more than 40% to reach two million barrels per day by 2030.
This objective is considered ambitious, even optimistic, given the state of the infrastructure, investment needs, and dependence on foreign players.
Caution remains all the more necessary as Libya remains politically fragmented. The coexistence of an internationally recognised government in the west and a rival authority in the east, backed by Marshal Khalifa Haftar, continues to intermittently disrupt oil flows.
These tensions have repeatedly led to the closure of fields and terminals, reminding investors of the sector’s vulnerability to internal power struggles.
Despite its exceptional energy potential, Libya thus appears as a high-yield but high-risk market.
Ongoing reforms are improving the formal attractiveness of the investment framework, but they are not dispelling the political and security uncertainties that, for international actors, constitute the main obstacle to a large-scale and sustained commitment to the Libyan oil sector.
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