Libya’s oil and gas sector is entering a transformative era, with the return of major international energy companies after over a decade of stagnation. The renewed interest in Libya’s vast untapped reserves is expected to trigger a production boom and restore the country’s prominence in the global energy market.
According to a report by the US-based Energy Platform, global players are eyeing Libya’s proven reserves exceeding 40 billion barrels of oil, much of which is located in the prolific Sirte Basin. This signals a new wave of international investment in the North African state.
In July 2025, British energy giant BP signed a Memorandum of Understanding (MoU) with the National Oil Corporation (NOC) to redevelop the Sarir and Messla fields, and assess the potential of unconventional oil and gas resources in the area. The company plans to open offices in Libya by the last quarter of the year.
That same month, Shell also made its comeback, inking an MoU with the NOC to study the technically complex Atshan Field, as well as other assets, with feasibility and technical studies planned as a first step before full-scale development.
In August 2025, ExxonMobil joined the momentum, signing an MoU to conduct geological and geophysical studies in four offshore blocks — marking its first return to Libya in over ten years.
Libya currently produces around 1.38 million barrels per day, with ambitions to raise output to over 2 million barrels daily in the coming years. The last time Libya reached such levels was in the mid-2000s.
During the first half of 2025, average production rose to 1.28 million barrels/day, compared to 1.15 million barrels/day in the same period of 2024. The Sharara field — known for producing some of the world’s highest-quality crude — hit 310,970 barrels/day, its highest since 2018.
The Sarir Oil Operations Company also boosted its output to 54,000 barrels/day. Libya’s oil and gas revenues reached $11.32 billion in the first seven months of 2025, up from $10.6 billion in the same period of 2024, a year-on-year increase of $720 million.
Despite this surge, challenges persist. Many facilities require modernization, and several fields face repeated shutdowns due to technical or logistical issues. Investment in enhanced oil recovery (EOR) technologies is seen as vital to maximizing output from aging fields.
Industry experts believe that the return of global firms with cutting-edge technology offers Libya an opportunity to boost operational efficiency and overcome infrastructure gaps. According to Energy Connects, the first phase of these agreements will focus on data analysis, feasibility studies, and field assessments, with large-scale investment decisions expected within one to two years.
With a strategic location, massive reserves, and renewed international interest, Libya is once again emerging as one of the most promising frontiers in the global energy landscape.