Libya has been performing quite well in increasing its oil production.

Today, the country is producing just over 1.4 million b/d - the highest level since 2012. Libya is gradually on track to reach 1.6 million b/d by 2026, which was the pre-2011 production level before the fall of the Gaddafi regime. However, Libya’s main challenge remains instability, an issue inherent to a failed state with foreign interference. Just yesterday, reports emerged that exports from the oil crescent region, including Ras Lanuf, were temporarily halted by protesters making demands from the National Oil Corporation. While loading resumed after a few hours, an ultimatum of two weeks was issued. This is the kind of environment Libya faces, despite its significant potential.

How attractive is the country’s energy sector for foreign investors?

Libya is expected to launch a new licensing round this year, offering between 15 and 21 exploration blocks across three basins. Geographically, it is wellpositioned, with lower exploration and export costs. However, political and institutional risks, alongside the persistent threat of conflict, continue to undermine its investment appeal. Libya also has immense natural gas potential. However, even existing export capacities remain underutilized. For example, the GreenStream pipeline to Italy has a capacity of 11 BCM/year, yet only 2.4 BCM/year is currently being exported.