Libya is pressing ahead with a broad-based energy revival that combines renewed foreign exploration, fresh domestic achievements, and ambitious national production goals, signaling a gradual return of confidence to a sector long constrained by political volatility and security disruptions. After years of stagnation, the country’s oil industry is showing simultaneous momentum on multiple fronts—from Algeria’s Sonatrach restarting exploration to local operators achieving new production milestones—underpinned by efforts from the Tripoli-based government to modernize infrastructure and attract international investment.
A major sign of renewed activity came in mid-October when Algeria’s Sonatrach resumed work in Libya’s Ghadames Basin after an 11-year interruption. The company has gone back to complete drilling on exploratory well A1-96/2 in Block 96/2, a project first initiated in 2014 before instability forced its suspension. Work will now continue to reach a depth of about 8,440 feet in a zone located near the Libyan-Algerian border, within 100 kilometers of Mellitah Oil Company’s Wafa field. Sonatrach operates there under an Exploration and Production Sharing Agreement signed with the National Oil Corporation (NOC) in 2008, reflecting a longstanding partnership between the two neighboring producers. The resumption could be interpreted as the potential return of regional oil investment with cross-border collaboration resuming under improved security conditions.
At the same time, domestic operators are stepping up efforts to expand exploration capacity. The Arabian Gulf Oil Company (AGOCO), a subsidiary of the NOC, has begun drilling the NC2 K1 well in the southwestern section of the Ghadames Basin. The project, executed using the ADWOC 7004 rig, is expected to reach a depth of 11,700 feet. It marks AGOCO’s tenth exploratory well in the area since 1985, continuing its decades-long pursuit of new reserves in one of Libya’s most geologically promising zones.
Further east, the Zueitina Oil Company achieved notable progress after testing its new B1-106/4 well in the Lower Sabil layer of concession 103. The test produced over 3,000 barrels per day—one of the most productive flows ever recorded in that formation. The result shows the potential of Libya’s deep geological strata, an area long underexplored due to technical and budget limitations. Zueitina credited intensive geological and geophysical collaboration for the breakthrough, saying enhanced data analysis guided the decision to extend drilling to greater depths. The outcome is expected to support upcoming field development programs aimed at increasing overall production efficiency.
These upstream achievements feed directly into Libya’s wider policy agenda. Minister of Oil and Gas Khalifa Abdul Sadek said earlier this month that the government targets raising daily oil output from roughly 1.38 million barrels today to 1.6 million barrels by the end of 2026, restoring the level achieved before the 2011 conflict. Meeting that goal will require between $3 billion and $4 billion in fresh investment, much of which is planned for upgrading pipelines, refineries, and storage facilities. In this context, the Libyan authorities have opened consultations with U.S. majors ExxonMobil and Chevron as well as other international companies exploring new onshore and offshore projects. The country also began its first licensing round in 17 years, essentially inviting foreign investors to reengage in one of the region’s most resource-rich zones.
Libya is also emphasizing gas output, with production reaching approximately 2.5 billion cubic feet per day, of which around 200 million cubic feet are exported to Italy via the Greenstream pipeline jointly operated with ENI. Proven crude reserves stand at roughly 48 billion barrels—Africa’s largest oil reserves—while the hydrocarbon sector still accounts for around 90 percent of government revenue and 95 percent of exports.
Still, Libya’s renewed drilling and upstream efforts operate within a fragile political environment that threatens to undermine the sector’s progress. Rival governments in Tripoli and Benghazi continue to compete for control of the National Oil Corporation and its revenues, creating overlapping claims that deter investors and delay major projects. Security incidents, militia interference, and the persistent east–west division heighten the risk of production shutdowns and contract disputes.
While exploration results and foreign participation show operational promise, these gains remain contingent on political coherence and improved institutional governance. Without genuine power-sharing, regulatory clarity, and consistent security guarantees, Libya’s oil revival could once again stall amid the very instability that has defined it for over a decade.
