Political Turmoil Highlights the Fragility of Libya's Planned Oil Boom

Libya News

Political Turmoil Highlights the Fragility of Libya's Planned Oil Boom
Oil ProductionSharara Oil FieldKhalifa Haftar
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Libya's oil production is disrupted again due to the arrest of a military leader's son, highlighting ongoing political instability and disputes over oil revenue sharing.

Following a broadly peaceful 2023, Libya ’s oil sector once again looks as stable as a puff adder on Benzedrine. Having averaged crude oil production of around 1.1-1.2 million barrels per day bpd for much of the last year and a half, the country had appeared unusually well placed to begin the process of increasing its output to 2 million bpd within the next three to five years as planned. After all, it still sits atop the largest proved oil reserves in Africa, at about 48 billion barrels.

Eni still produces gas in Libya from its Wafa and Bahr Essalam fields operated by Mellitah Oil & Gas, a joint venture between the Italian company and the NOC. Prior to this, various Libyan political figures had also stated that they expected a separate program of offshore and onshore drilling to start within the coming months, under the leadership not just of Eni but BP and TotalEnergies too.

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Oil Production Sharara Oil Field Khalifa Haftar United Nations National Oil Corporation (NOC) International Oil Companies Eni Totalenergies Oil Revenue Sharing

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