There is no denying that recent and continuing events in Libya’s NOC and oil ministries cause confusion and anxiety and, whilst the big players have already fundamentally road mapped their route to market and their engagement and development strategies it is also important to note the opportunities that could be presented to local and international smaller players and SME’s engaged in this space.

 

The facts:

Libya, located in North Africa, is a country rich in oil reserves, ranking among the top in Africa and globally. With its strategic position in the Mediterranean, Libya holds the largest proven oil reserves in Africa, estimated at over 48 billion barrels. Historically, it has been a key player in the global oil market, exporting high-quality crude, particularly to Europe.

In the global oil economy, Libya has significant potential to increase its influence due to its vast untapped reserves. If the National Oil Corporation (NOC) succeeds in implementing its ambitious production goals, such as increasing crude output from 1.4 million barrels per day (bpd) to 2 million bpd, Libya could regain its prominence. The recent focus on revitalising marginal oil fields, brownfield projects, and new licensing rounds could further enhance its position, attracting both major and smaller international oil companies.

 

The Opportunity:

Libya’s marginal oil fields present a strategic opportunity for both local and international companies. As the country works to revitalise its oil and gas sector, the National Oil Corporation (NOC) has laid out ambitious plans to increase crude production to 2 million barrels per day (bpd) from the current 1.4 million bpd. This goal is driven by the development of marginal fields, brownfield projects, and upcoming licensing rounds, creating fertile ground for partnerships and investments.

For the first time in 17 years, Libya is set to launch a new license bidding round for oil and gas exploration, expected to take place before the end of January 2025. This round will focus on three key geological basins – Sirte, Murzuq, and Ghadames – encompassing 15 to 21 blocks. This development signals a renewed commitment to expanding exploration activities and tapping into the country’s untapped reserves.

The NOC has emphasised that developing existing fields is essential to boosting production noting the strategic importance of this bidding round, stating, “Whenever there is production, there is a loss, and this loss must be compensated for by exploration.” This underscores the focus on both exploration and revitalization of existing resources.

Marginal oil fields, which are often underdeveloped or overlooked, have become a significant focus for Libya’s NOC. The corporation has received interest from over 30 companies to develop these assets and has identified 45 greenfield and brownfield projects to meet its production targets. However, it is important to note that marginal fields are exclusively open to Libyan companies partnered with international firms, ensuring the infusion of advanced technologies and expertise from global players.

The Libya Energy & Economic Summit 2025, held in Tripoli, showcased the country’s energy potential and highlighted emerging opportunities in the sector. Major international energy companies outlined strategies to advance oil and gas production. Notably, Repsol resumed oil exploration in Libya after a 10-year hiatus, drilling in the Murzuq Basin near the Sharara oil field. These developments reflect growing confidence in Libya’s investment climate.

The NOC’s strategy to invite foreign companies aims to leverage their advanced technologies and capabilities. This includes investment in infrastructure and cutting-edge exploration methods to unlock the full potential of Libya’s oil reserves. The partnerships between Libyan and international companies align with the country’s broader economic and production goals.

Libya’s ability to increase oil production is significantly hindered by its aging and failing infrastructure. Decades of underinvestment, conflict, and neglect have left key facilities, pipelines, and refineries in disrepair. This impacts not only the efficiency of current operations but also the ability to scale up production to meet future targets. Frequent breakdowns, logistical bottlenecks, and security concerns further complicate the situation.

To address these challenges, Libya requires substantial investment in infrastructure modernisation and technological upgrades. The NOC plans to launch a new bid round for exploration projects, encouraging global companies to invest in both new and existing fields. These investments are expected to enhance the national income, develop the oil and gas sector’s infrastructure, and create a sustainable path for future growth. Modernising infrastructure will also help mitigate operational risks and ensure a stable output from both marginal and mature fields.

Libya’s marginal oil fields offer a wealth of opportunities for development through strategic collaborations between Libyan and international companies. The upcoming licensing rounds, focus on brownfield projects, and efforts to attract foreign investment create a favourable environment for exploration and production activities.

For smaller local and international companies and SMEs, this could mean unprecedented access to exploration opportunities at a relatively low cost of entry. These businesses can bring niche expertise, advanced technologies, and innovative solutions to address challenges in marginal field development. Additionally, partnerships with Libyan entities allow these companies to tap into local knowledge and networks, creating a mutually beneficial pathway for growth. By addressing its infrastructure challenges and revitalising its oil sector, Libya not only aims to achieve its production targets but also to support its broader economic recovery and growth. For companies willing to engage in this promising sector, the potential rewards are significant.

The Drip Down Effect… Great Business.