Libby Hargreaves
Libya’s energy sector rebounds as $20bn in deals and 1.6m bpd targets signal a new era of growth and renewed global confidence in its hydrocarbon potential
After more than a decade marked by uncertainty and operational challenges, Libya’s energy market could be entering a new phase of growth. The North African nation has signed a series of major agreements with international energy companies, signalling what industry observers describe as renewed confidence in the country’s hydrocarbon sector.
Libya has finalised a 25-year development agreement with TotalEnergies and ConocoPhillips through state-run Waha Oil Company. The deal involves more than US$20bn in externally financed investment and targets production capacity increases at the Waha concessions of up to 850,000 barrels per day (bpd) from current output levels of between 340,000bpd and 400,000bpd.
The investment could generate net revenues exceeding US$376bn over the contract period, according to the National Oil Corporation’s projections. TotalEnergies CEO Patrick Pouyanné and ConocoPhillips CEO Ryan Lance signed the amended agreement at the Libya Energy & Economic Summit in Tripoli on 25 January 2025.
The African Energy Chamber has framed this surge in investment as a notable comeback for Libya, where oil and gas production had fallen considerably below potential between 2014 and 2023. The country’s crude oil production averaged approximately 1.375 million bpd in 2025, representing the highest level since 2013.
By early 2026, total oil production in Libya exceeded 1.52 million bpd according to the Ministry of Oil and Gas figures. The country’s oil revenues amounted to around US$22bn in 2025, marking a 15% year-on-year increase. Prime Minister Abdulhamid Dbeibah attributed this recovery to the activation of several fields including Iravn, Mutahandush, al-Khayr, Hamada 47 and Sinawan.
Libya’s Oil and Gas Minister, Khalifa Abdulsadek, has outlined plans to increase crude output to 1.6 million bpd by the end of 2026.
Gas developments gather momentum
Gas production has also been expanding in Libya. Italian energy firm Eni has confirmed that its US$8bn Structures A&E offshore gas development remains on schedule. The project, led by Mellitah Oil & Gas, is a joint venture between Eni and Libya’s National Oil Corporation and is scheduled for completion by the end of 2027.
At full capacity, the development could add around 750 million standard cubic feet per day of gas production, supporting both domestic demand and European exports via subsea pipelines to Italy or LNG tankers.
Eni also announced that its Bahr Essalam gas compression project is scheduled to begin operations in early 2026, adding approximately 100 million standard cubic feet per day to Libya’s gas output. A second gas utilisation project is planned for the third quarter of 2026, potentially delivering an additional 100–120 million standard cubic feet per day.
____________________
