Despite Low Revenues and a Rising Deficit… Dbeibeh Government Promotes Oil Achievements, Details Follow

Prime Minister of the Government of National Unity, Abdulhamid Dbeibeh, said that the Energy Summit represents an important annual milestone in the energy sector and affirms Libya’s return to its natural position within the regional and international energy system. He stressed that the Libyan state deals with the energy file as a sovereign and economic decision that determines the state’s ability to achieve stability, growth, and improved services.

Dbeibeh explained that, during the past period, the Government of National Unity focused on stabilizing regular production, improving the efficiency of the operational system, and preparing a clearer environment for companies and investment.

He noted that the oil and gas sector recorded tangible performance indicators during 2025, as the year witnessed the highest daily production rate of 1.074 million barrels per day—the highest in more than twelve years—alongside bringing a number of new fields into production, including Erwan, Medkhoudech, Al-Khair Field, Hamada 47, and the Sinawan Field.

In the area of exploration, Dbeibeh announced the launch of a public bid round to grant exploration and drilling concessions for oil and gas onshore and offshore, to be announced during the second week of February, with broad participation from international companies.

Regarding gas, Dbeibeh affirmed that the state has given it special priority as a decisive element for economic and service stability, pointing to the signing of the offshore Fields (A and H) agreement aimed at boosting gas production, supporting local market reserves and stability, and strengthening electricity generation and the national grid.

He stated that the summit is being held as a working platform that produces clear agreements and long-term projects. Its fourth edition will witness the signing of a package of memoranda and agreements with direct economic impact, foremost among them the first amendment to the agreement on the return of companies to the National Oil Corporation—namely Waha, France’s TotalEnergies, and the American company ConocoPhillips. The agreement extends for 25 years, with investments exceeding USD 20 billion, targeting an increase in production capacity to 850,000 barrels per day, with expected net revenues exceeding USD 376 billion over the duration of the agreement.

The agreement also includes a memorandum of work with the American company Chevron for investment opportunities in exploration, field development, and increasing production and recovery rates.

Dbeibeh added that the summit’s activities include a memorandum of cooperation with Egypt in the fields of exploration, production, and related logistics services, explaining that the agreements of an American character come under the direct supervision of the Government of National Unity and in the presence of senior advisers to U.S. President Donald Trump.

The Prime Minister affirmed that the state is moving forward in expanding international partnerships, as the National Oil Corporation has enabled enhanced cooperation with major global companies in a way that supports reserve replacement, boosts production, and achieves added value for the Libyan national economy.

The state has also launched a renewable energy strategy as part of its commitments to confront climate change, reduce carbon emissions, and secure diverse energy sources to meet local consumption needs in the near and long term.

On environmental matters, Dbeibeh said that, a year ago, and in partnership with a number of managers of foreign companies, the “Green Libya” initiative was launched to plant 100 million trees, as a direct commitment to Libyans’ right to a clean environment.

He explained that the initiative has already begun, planting sites and local communities supporting the project have been identified, and it is ready for implementation. He called for accelerating the pace, not settling for initial steps, demanding greater contributions, faster execution, and results measurable on the ground within weeks, not months.

For his part, Masoud Suleiman, Chairman of the National Oil Corporation, affirmed that the Corporation’s vision is based on a firm conviction that oil and gas together constitute a fundamental sovereign pillar—not only for the national economy but also for the stability of energy markets regionally and internationally. He noted that the Corporation is working to build an integrated, strong, stable, and transparent energy sector capable of attracting quality investments and adhering to the highest international standards of governance, safety, and sustainability.

Suleiman explained that despite the challenges the sector has faced in recent years, the Corporation—through the efforts of its national staff, with the support of the Government of National Unity and in cooperation with its partners—has achieved tangible accomplishments in the oil and gas sectors. Production continuity was maintained and production rates increased, noting that cumulative crude oil production in 2025 reached its highest level in thirteen years, exceeding 500 million barrels.

He added that the Corporation restarted a number of fields and facilities and achieved improvements in operational performance, in addition to strengthening safety procedures and asset protection.

Suleiman pointed to several significant oil and gas discoveries over the past year in the Ghadames and Murzuq basins, in addition to carrying out 3D seismic surveys over an area of nearly 4,000 square kilometers, stressing that these achievements were realized thanks to qualified and well-trained technical staff.

He stated that the Corporation gives special attention to the gas sector due to its growing importance in the global energy mix, confirming that Libya has promising gas potential both onshore and offshore, which is being developed to balance meeting local demand, supporting national industries, and strengthening Libya’s role as a reliable supplier to regional and international markets.

He revealed that during this year the Corporation will proceed with developing the Arus Al-Bahr sector, the North Jalo Field, concession NC-7, among others, in addition to operating the Ras Lanuf refinery—one of the largest refineries in North Africa—alongside implementing a number of major strategic projects.

In the gas sector, Suleiman explained that the Corporation has strategic projects onshore and in the Mediterranean Sea, most notably completing the second phase of development of the Bahr Essalam Field (A and E), in addition to the South Essalam Field, in partnership with Eni.

He confirmed the Corporation’s serious pursuit of exploratory drilling for unconventional gas resources (shale gas), noting that, within the framework of environmental protection and reducing carbon emissions, the Corporation has succeeded in converting about 100 million cubic feet per day of flared gas into a utilization system for electricity generation and petrochemical industries. There is also a plan to convert additional quantities exceeding 120 million cubic feet per day during this year, raising the implementation rate of the emissions reduction plan to more than 60%, reaching a near-zero flaring rate.

Regarding the development of local refineries, Suleiman affirmed that the Corporation is working to meet local market needs for fuels through the maintenance and development of existing refineries and the establishment of new ones, in addition to developing the petrochemical industry, calling on international partners to invest in these vital areas.

He stressed that stability is the decisive factor for the success of this vision, explaining that the Corporation operates as an independent professional institution that places Libya’s interest above all else. Partners have noted a clear improvement in the working environment and its relative stability, which the Corporation seeks to strengthen to ensure production sustainability and attract investments.

Regarding the public bid round, Suleiman explained that it represents a clear message of Libya’s restoration of its position on the global investment map in the energy sector, noting that the results of the round will be announced with full transparency on February 11, within a strategy aimed at enhancing Libya’s competitiveness in attracting global capital amid rapid transformations in the global energy sector.

He pointed to the adoption of an advanced model for exploration and production sharing agreements, specifically designed to improve economic feasibility and accelerate returns, allowing investors to participate in revenues from the early stages of operations. The model adopts a flexible, gradual approach instead of rigid production levels, achieving a fair balance between the state’s interest and investment attractiveness. He expected the internal rate of return for investors to reach around 35% in high-performance assets.

Suleiman concluded by noting that the round has attracted wide interest from major international companies, with 37 global companies qualifying. He affirmed that the Corporation aims to raise crude oil production to 1.6 million barrels per day as a short-term first phase, then to 2 million barrels per day as a medium-term phase, strengthening Libya’s position as a major and reliable player in global energy markets.

At the same time, the deficit is rising to USD 9 billion according to Central Bank data, due to low revenues transferred from the National Oil Corporation to the Central Bank, shortages over the years, delays in transfers, and the continued questioning of the reasons behind this.