Global energy analytics firm ‘Enverus’ has said that Libya’s vast fossil fuel reserves and recently introduced investor-friendly reforms are helping to attract renewed interest from international energy companies, despite the country’s persistent political and security challenges. In a new assessment, the firm described Libya as re-emerging on the global energy investment map after years of limited upstream activity.
Enverus, a leading provider of data analytics and software solutions for the oil and gas industry, estimates that Libya’s upcoming oil and gas licensing round, expected to be launched by the National Oil Corporation in early 2026, could open access to approximately 10 billion barrels of recoverable resources.
In addition, the company believes that a further 18 billion barrels may be discovered through future exploration, highlighting the scale of Libya’s untapped potential.
According to the report, revised fiscal terms have significantly improved the investment case for international contractors.
The updated framework includes a reduced government take of around 66 percent and an estimated internal rate of return of 19.8 percent, positioning Libya competitively alongside moderate production-sharing regimes worldwide. Enverus noted that these changes directly address long-standing investor concerns related to profitability, cost recovery, and contractual clarity.
Tom Richards, Enverus’ regional director, said the forthcoming licensing round represents a pivotal moment for Libya’s energy sector. He explained that clearer profit-sharing mechanisms, simplified cost-recovery rules, and more transparent financial terms are generating meaningful interest from global oil companies that had previously remained cautious about operating in the Libyan market.
While Enverus described the current moment as a genuine opportunity, it cautioned that long-term success will depend on Libya’s ability to convert potential into sustained investment and production growth. Achieving the country’s target of producing two million barrels per day would require exploration and development activity roughly six times higher than levels seen over the past decade.
The firm also stressed that higher output will depend on progress in institutional reform, improved security conditions, and reliable payment systems. Despite the sector’s strong fundamentals, Enverus warned that ongoing political paralysis, institutional fragmentation, and unresolved maritime boundary disputes in the eastern Mediterranean remain significant risks to fully unlocking Libya’s oil and gas potential.