Libya oil and gas production expansion

Libya’s National Oil Corporation (NOC) is pursuing aggressive production and infrastructure expansion goals. At the Sharara oilfield, the NOC and Akakus Oil Operations have set a target to reach approximately 355,000 barrels per day (bpd) by mid-2027, following a peak of 335,000 bpd in August.

To achieve a broader goal of increasing total crude production from 1.4 million bpd to two million bpd by 2030, the NOC is seeking between USD 30 billion and USD 40 billion in foreign investment to modernize aging infrastructure and develop over 60 untapped oil and gas fields. This initiative follows the reopening of blocks to foreign companies for the first time in seventeen years. However, investment from major firms such as ENI and TotalEnergies has slowed due to liquidity issues, governance concerns, and political instability. To attract investors, the NOC is considering transitioning from production-sharing agreements to concession-style models.

In a regional development, Libya and Tunisia are relaunching a joint energy project to explore a 3,000 km² offshore zone in the Gabès-Tripoli basin. Managed by the joint venture Joint Oil, the project aims to develop the Zarat discovery, which spans the maritime border between the two nations. The selection process for international partners is expected to begin in September 2026, with final contract awards projected by April 2027.

Despite these expansion efforts, the sector continues to face challenges including security risks and recent drone attacks on refineries and power substations.