Maghreb Edition

Libya’s Oil Ambitions Undermined by Governance GridlockF

Posted On 22 April 2025

Number of times this article was read : 3488

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.

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