International reports highlight that Libya’s ongoing political fragmentation and fragile security environment remain major obstacles to foreign investment in the oil sector, despite the country holding one of North Africa’s largest hydrocarbon reserves.
According to a recent Bloomberg analysis, cited by APA News, Libya has begun to attract renewed interest from leading global energy companies, driven by the scale of its reserves and recent reforms to financial and contractual frameworks. Yet political and security risks continue to weigh heavily on investor decisions.
A study by Enverus Intelligence Research noted that the new licensing round launched by authorities in Tripoli covers 22 exploration blocks, containing an estimated 10 billion barrels of recoverable oil, along with nearly 18 billion barrels believed to remain undiscovered—making Libya one of the most promising exploration frontiers in North Africa.
The report quoted Tom Richards, Enverus’s regional director, as saying that the current licensing round could mark a turning point for a sector long paralyzed by instability. He pointed to improved tax terms, streamlined cost‑recovery mechanisms, and clearer production‑sharing agreements as measures designed to reduce legal uncertainty and enhance investment appeal.
Despite these reforms, the agency stressed that investment openness remains contingent on external factors, chiefly the persistence of political division and the existence of rival authorities in the east and west, which periodically disrupt oil production and exports.
The National Oil Corporation aims to boost output by more than 40% to reach two million barrels per day by 2030, but this target is considered ambitious given deteriorating infrastructure, the need for massive investment, and heavy reliance on foreign companies. Libya thus remains a high‑reward yet high‑risk market unless the roots of political and security instability are addressed to secure sustained international comments.
