Libya Needs Billions to Boost Oil Output

Libya requires a substantial financial injection to modernize its aging infrastructure and achieve production targets, with estimates indicating a need for between $36 billion and $40 billion in foreign investment to raise output to 2 million barrels daily by the early 2030s. The National Oil Corporation chairman, Masoud Suleman, emphasized that securing this capital is essential for the company to meet its strategic production goals. This ambition to boost production to 2 million barrels daily has been a central focus for the conflict-torn nation, which remains heavily dependent on oil revenues to sustain its economy.

Restoring Stability

Earlier this month, the head of the National Oil Corporation reiterated that this is the plan for the company, following the country’s parliament finally passing a unified budget for the current year. The budget includes a $2-billion lifeline for the National Oil Corporation designed to help it pursue its production growth plans. These funds aim to address the financial strain that has historically plagued the sector, providing the necessary liquidity to fund expansion projects. The unified budget framework provides a stable fiscal environment, which is key for long-term planning in the oil and gas sector.

“The era of delayed funding, which used to cause problems and concerns, both for us and our partners, is now behind us,” NOC chairman Masoud Suleman told Bloomberg in an interview earlier this month. The budget plans and the timely payments make NOC more confident in attracting investments in the country’s oil and gas sector, the top official also said. This renewed confidence is a direct result of the government’s commitment to fiscal responsibility and the resolution of internal budgetary disputes.

Big Oil Returns

The National Oil Corporation is already working on its plans, resuming oil tenders last year, after almost two decades of no tender activity amid a protracted civil war that made most international oil companies leave the North African country. This region is estimated to hold the most abundant oil resources on the continent, yet decades of instability have kept potential investors at bay. The security situation has improved enough to allow these firms to return, signaling a shift in the geopolitical setting that favors economic development over conflict.

Now, Big Oil is returning. In June, NOC formally signed exploration and production-sharing agreements from its 2025 bid round with international companies including Repsol, Turkish Petroleum, Eni, QatarEnergy, and MOL, marking the country’s first major licensing push in 17 years. These agreements represent a significant step forward in international cooperation, as major global energy players commit resources to Libya’s recovery. BP, Shell, Exxon, and Chevron are also returning to Libya as the security situation stabilizes, even though oil fields and infrastructure remain a top target for various groups seeking to apply pressure on the government.