Following several disruptions to oil and gas activity in recent years, Libya’s energy sector is on the cusp of a transformation with new fields being brought online, production accelerating across key assets and upstream campaigns unlocking new finds in untapped acreage.
Following the failed Presidential elections of December 2021 and its negative impact on the oil and gas industry, Libya’s oil production started to get back on track in the second half of 2022, aimed at boosting production in line with high global demand and elevated prices. And things are looking up for 2023, with increased foreign investment in Libya’s oil and gas sector, as well as support from the IMF.
Gas flows from Libya to Italy have resumed after an interruption that lasted about two weeks due to a vast restructuring of the Mellitah plants, located on the North African coast.
Libya’s Oil and Gas Outlook Continues to Look Stronger in The State of African Energy Q1 2023 Report
When global oil prices reached a 15-year high in 2022, Libya, which holds 3% of the world’s hydrocarbon reserves and 39% of Africa’s, was unable to take advantage of the windfall.
Before the removal of its long-time leader, Muammar Gaddafi, in 2011, Libya had easily been able to produce around 1.65 million barrels per day (bpd) of mostly high-quality light, sweet crude oil.
Given the fragile supply-demand balance in the global energy market and the toxic inflation-interest rate mix with which many developed economies have been struggling, news of additional oil and gas supplies is welcome.
Libya was thrust back into the spotlight last week when it announced that it is pumping a million fewer barrels of oil than it did last year.