Libya is preparing to launch its first oil exploration tender in over a decade as the country seeks to attract international oil companies back to its lucrative energy sector. The move is aimed at revitalizing the industry, which has been hindered by years of instability and disruptions since the 2011 civil war.
Oil Minister Khalifa Abdul Sadeq announced that the government plans to offer both onshore and offshore oil blocks in a competitive bidding round, set to take place either at the end of this year or in early 2025. The targeted areas for exploration include the Sirte, Murzuq, and Ghadames basins.
Libya, home to Africa’s largest proven oil reserves, has not conducted an oil exploration tender since 2007, before the uprising that ousted longtime leader Moammar Al Qaddafi. The civil war that followed saw production levels plummet as major oil companies withdrew or halted operations.
However, oil production in Libya has made a significant recovery, currently surpassing 1.3 million barrels per day — the highest in several years. Minister Abdul Sadeq expressed optimism that further development of existing oil fields could raise output to 1.6 million barrels per day by 2025.
Libya is also in talks with five major international oil companies about returning to the country next year. While the names of these companies have not been disclosed, major players such as Italy’s Eni and BP have already resumed drilling operations in recent months after a hiatus that began in 2014. Spain’s Repsol is preparing to restart drilling in the Murzuq basin, while Austria’s OMV plans to begin work in the Sirte basin shortly.
In addition to the tender, the Libyan government plans to invest $17 billion in infrastructure projects aimed at modernizing existing facilities and developing new fields that have already been appraised. These initiatives are expected to boost production by up to 300,000 barrels per day.
Looking ahead, the government is targeting a production rate of 1.4 million barrels per day by the end of 2024, with aspirations to reach 1.7 million barrels per day by 2027 and 2 million barrels per day by 2028.
As Libya works to restore its status as a major oil producer, this new phase of exploration could help secure its energy future and bring much-needed investment to the country.
