22-07-2025
Libya opens doors to 40+ oil firms
Oil and gas revival gains momentum. Photo via Reuters
Libya has attracted participation from over 40 international oil and gas companies in its latest licensing round, signalling renewed global confidence in the country's energy sector.
The companies represent a wide geographical range, including North America, Europe, Southeast Asia, and the MENA region, reflecting increasing investor interest in Libya's upstream potential.
The ongoing licensing round is part of a broader effort to reposition Libya as a competitive destination for energy exploration. It follows recent steps to align financial and contractual frameworks with international standards, aiming to make the country's energy environment more attractive and predictable for global investors.
As part of these efforts, Libyan authorities have conducted a comprehensive review of past contracts through internal auditing and external benchmarking led by the consultancy firm Wood Mackenzie.
The review identified the need for more competitive financial terms and clearer mechanisms for sharing investment risks—both of which are being incorporated into the current licensing strategy.
In parallel with oil exploration, Libya is also intensifying its focus on natural gas, particularly in support of regional energy demand. A major development is the Structures A&E offshore gas project, carried out in partnership with Eni.
The project is expected to contribute approximately 750 million standard cubic feet per day, helping to compensate for declines in offshore output and enhancing the country's export and domestic supply capacity.
Libya has also reaffirmed its commitment to ending routine gas flaring by 2030. This environmental goal aligns with broader international climate strategies and supports Libya's positioning as a responsible energy supplier in the context of Europe's shift toward low-carbon fuels.
The country's energy strategy further includes investment in solar power, with the aim of reducing dependence on diesel and heavy fuel oil for electricity generation. This transition will allow for more efficient use of natural gas reserves and open new opportunities for export.
Additionally, carbon capture and storage (CCS) is emerging as a priority area for investment, with estimated potential in the range of US $1 billion. The integration of CCS technologies complements Libya's commitment to sustainable development and climate-resilient growth.
Overall, the licensing round and accompanying reforms mark a broader shift in Libya's energy policy—balancing the redevelopment of traditional oil fields with a long-term vision for cleaner, more diversified energy sources.
