Libya’s oil and gas industry renaissance amid U.S. interest

• Libya’s oil and gas industry is on the precipice of accelerated growth, backed by rising investor confidence, new licensing opportunities and strengthening global interests.
• Libya was described as a “high priority” for the current U.S. administration during the U.S.–Libya Roundtable at the LEES 2026 conference.
• During France-Libya talks, TotalEnergies confirms it is targeting end-2026 final investment decisions for the North Gialo 6J oil development and the 500 MW Sadada solar project.
• Long-standing Italy-Libya energy ties were reinforced during the Italy-Libya Roundtable while K.–Libya engagements highlight Libya’s plans to launch a second upstream licensing round.

As the debate for energy security hots up globally, Libya is entering a new phase of development, marked by renewed investor confidence, stronger international partnerships and a clear focus on moving projects from ambition to execution.

This momentum was on full display at the 2026 edition of the Libya Energy & Economic Summit (LEES), where high-level engagements with the U.S., France, Italy and the United Kingdom underscored growing global appetite to invest in and partner with Libya across upstream, gas and power priorities.

Through a series of targeted roundtable discussions, LEES 2026 delivered a clear message to international investors: Libya is open for business.

U.S.–Libya: Strategic Priority and Expanding Commercial Footprint

Libya was described as a “high priority” for the current U.S. administration during the U.S.–Libya Roundtable, with officials pointing to rising American investment, a growing presence of U.S. energy companies and the strategic importance of Libya’s upstream revival.

Convened by the American Chamber of Commerce, the session highlighted opportunities linked to Libya’s ongoing licensing round and the National Oil Corporation’s multi-billion-dollar development program, with U.S. operators and service providers signaling continued commitment to production growth, technology deployment and workforce development.

France–Libya: Project Momentum and Institutional Cooperation

The France–Libya Roundtable, sponsored by Business France, highlighted both project-level progress and deeper institutional alignment. TotalEnergies confirmed it is targeting end-2026 final investment decisions for the North Gialo 6J oil development and the 500 MW Sadada solar project, reinforcing France’s dual focus on hydrocarbons and renewables in Libya.

In parallel, the Libyan Council for Oil, Gas and Renewable Energy and Business France signed a memorandum of understanding to strengthen collaboration between French and Libyan companies, with a potential joint venture under consideration to support energy investment and project development.

Italy–Libya: From Hydrocarbons to Power Generation

Long-standing Italy-Libya energy ties were reinforced during the Italy-Libya Roundtable, where participants called for expanded cooperation across oil, gas and power generation. Italy was positioned as a natural partner for Libya’s next phase of growth, combining operating experience, engineering capacity and geographic proximity.

Discussions highlighted ongoing gas developments, flaring-reduction initiatives and growing interest in electricity generation and infrastructure rehabilitation.

U.K.–Libya: Second Licensing Round Anchors Upstream Strategy

The U.K.–Libya Roundtable, convened by the Libya British Business Council, centered on Libya’s plans to launch a second upstream licensing round, positioning licensing continuity as a cornerstone of the country’s strategy to sustain production and attract long-term investment.

Libya’s Minister of Oil and Gas, Dr. Khalifa Abdulsadek, said strong global interest in the current licensing round – launched in 2025, with results expected shortly – has reinforced confidence in maintaining a regular, structured approach to acreage offerings. He also highlighted parallel initiatives targeting marginal fields, unconventional resources and underexplored acreage.

Libya’s oil and gas potential: The numbers investors should look at

• Libya possesses Africa’s largest proven oil reserves, estimated at 48.36 billion barrels as of 2025, accounting for 41% of the continent’s total and ranking 10th globally with 2.74% of world reserves.
• The country’s oil production averaged 1.2 million barrels per day in 2024, but political instability has capped it below potential levels of 2 million bpd.
• Libya’s domestic oil consumption stands at approximately 300,000 barrels per day, leaving the bulk of production for export revenues.
• Proven natural gas reserves in Libya total around 53 trillion cubic feet as of 2024, representing significant untapped potential amid infrastructure challenges.
• Natural gas production reached about 400 billion cubic feet in 2023, though flaring amounted to 240 billion cubic feet, ranking Libya seventh globally for gas flaring.
• Oil and gas contribute over 95% of Libya’s export earnings and 60% of GDP, underscoring the sector’s dominance despite underexplored reserves due to conflicts.
• Political instability and militia attacks have hindered investments, but stabilization could boost oil output to 2 million barrels per day by 2027.

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