Maghreb Edition

Libya’s Oil Ambitions Undermined by Governance GridlockF

Posted On 22 April 2025

Number of times this article was read : 3412

Libya’s energy sector is experiencing renewed interest, with billions in foreign investment and key infrastructure projects now underway. Unsurprisingly, Italian energy firm Eni is at the forefront of foreign investment in Libya’s energy sector, announcing a commitment of over €8 billion over the next four years, while offshore drilling operations are ramping up under Mellitah Oil and Gas, and long-idled industrial plants are returning to service, as reported in this article. While these developments suggest Libya is poised for economic renewal, the country continues to face major structural problems that will likely undermine the potential benefits of its energy windfall. Despite the momentum that we are seeing taking place in the oil and gas sector, the broader economy remains dangerously unstable, essentially as a result of political fragmentation that is enabling the weaknesses in financial governance.

🔓 READ THIS ARTICLE FOR FREE

This article is currently available to all registered users.

Create a free account (or log in) to continue reading immediately.

Already have an account? Log in

Subscribe to Urgent Notifications and Newsletter

Most Recent Stories from the Region

Morocco Becomes Africa’s Top-Ranked Industrial EconomyF

Morocco has become Africa’s leading industrial economy, followed by South Africa and Egypt. The African Development Bank (AfDB) ranked Tunisia fourth, reinforcing North Africa’s position as one of the continent’s principal industrial regions. The AfDB’s 2025 Africa Industrialization Index placed Morocco ahead of South Africa as Africa’s highest-ranked industrial economy.

Algerian Gas Exports to Europe Rise for Fourth Consecutive Month✓

Algeria continued to expand natural gas exports to Europe during the first four months of 2026, benefiting from steady pipeline deliveries to key markets including Spain and Italy. While Europe’s gas market continues shifting toward LNG imports, Algeria has maintained its position as one of the continent’s leading pipeline suppliers through a combination of established infrastructure, long-term contracts, and growing LNG activity.

Mali: Bamako Under Siege✓

Bamako is facing mounting pressure as jihadist group JNIM expands its campaign beyond military operations and increasingly targets the economic lifelines connecting Mali’s capital to the rest of West Africa. Attacks on highways, freight traffic, and commercial transport corridors have disrupted trade, affected regional commerce, and raised concerns about the government’s ability to maintain security and economic stability.

Written by The North Africa Journal

The North Africa Journal is a leading English-language publication focused on North Africa. The Journal covers primarily the Maghreb region and expands its general coverage to the Sahel, Egypt, and beyond, when events in those regions affect the broader North Africa geography. The Journal does not have any affiliation with any institution and has been independent since its founding in 1996. Our position is to always bring our best analysis of events affecting the region, and remain as neutral as humanly possible. Our coverage is not limited to one single topic, but ranges from economic and political affairs, to security, defense, social and environmental issues. We rely on our full staff analysts and editors to bring you best-in-class analysis. We also work with sister company MEA Risk LLC, to leverage the presence on the ground of a solid network of contributors and experts. Information on MEA Risk can be found at www.MEA-Risk.com.