Libya Nears Completion of First Oilfield Bidding Round in 17 Years to Attract Global Investment
Libya is nearing the completion of a landmark bidding round for oilfield exploration, signalling a renewed push to attract foreign investment and revitalise its energy sector.
The state-owned National Oil Corporation (NOC) confirmed that companies are expected to submit their offers in February.
This marks Libya’s first bidding round in more than 17 years and includes 22 exploration and development areas—11 offshore and 11 onshore.
According to the NOC, the new projects are designed to expand Libya’s crude oil and gas reserves and secure a stable economic future for the country. Despite having some of the lowest oil production costs in North Africa, Libya has struggled to maintain steady output due to years of political instability and conflict following the 2011 fall of Muammar Qaddafi.
In recent months, Libya has intensified efforts to rebuild its hydrocarbons sector and attract new operators. Oil Minister Khalifa Abdulsadek told an audience in Abu Dhabi that Libya aims to increase production from the current 1.4 million barrels per day to 1.6 million next year, reaching 1.8 million barrels per day by 2027.
Longer-term plans include redeveloping oilfields discovered in the 1950s and 1960s, with a broader goal of boosting output to two million barrels per day over the next five years.
However, investors remain cautious due to ongoing disputes between rival armed factions over control of oil revenues.
The NOC has been forced to declare force majeure at several key fields, including El Feel and Sharara, in response to protests and unrest.
Despite these challenges, Libya’s economic outlook is improving. The International Monetary Fund reported in April that the country’s economy is expected to rebound this year, supported by increased oil production after disruptions slowed growth in 2023.
Libya’s real GDP expanded by 2.4 percent last year, following a strong 10.2 percent recovery in 2023, as output climbed and security conditions gradually improved.
