Libya has attracted the participation of over 40 international oil and gas companies in its latest licensing round, signaling a renewed wave of global confidence in the North African country’s energy sector.
The companies represent a wide geographic spectrum—from North America and Europe to Southeast Asia and the MENA region—highlighting growing interest in Libya’s upstream exploration potential.
This licensing round is part of broader reforms to reposition Libya as a competitive destination for energy investment. To that end, Libyan authorities have reviewed their financial and contractual frameworks to better align with international standards and reduce investor uncertainty.
A comprehensive audit and benchmarking review, led by consultancy firm Wood Mackenzie, revealed shortcomings in previous contracts—particularly regarding competitive fiscal terms and clarity in risk-sharing mechanisms. These gaps are now being addressed in the new licensing strategy.
In addition to oil, Libya is ramping up efforts in natural gas production. A key project in this regard is the Structures A&E offshore gas development, implemented in partnership with Italian energy giant Eni. The project is expected to deliver around 750 million standard cubic feet of gas per day, bolstering both domestic supply and export capacity.
Libya has also reaffirmed its commitment to end routine gas flaring by 2030, aligning with global climate goals and reinforcing its image as a responsible energy provider, especially amid Europe’s transition toward cleaner fuels.
As part of its energy diversification strategy, Libya is investing in solar power to reduce reliance on diesel and heavy fuel oil for electricity generation. This shift will allow for more efficient use of natural gas reserves and open new export opportunities.
Furthermore, carbon capture and storage (CCS) is emerging as a priority investment area, with an estimated potential worth $1 billion USD. The integration of CCS technologies supports Libya’s commitment to sustainable growth and climate resilience.
Overall, the licensing round and accompanying reforms mark a strategic shift in Libya’s energy policy—striking a balance between revitalizing traditional oil fields and building a diversified, environmentally conscious energy future.