Shell, bp and Exxon lead the revival of Libya’s oil and gas sector
Aug 07, 2025
After more than ten years of limited activity, Libya’s oil and gas sector is showing strong signs of recovery. Once stalled due to instability and logistical challenges, the country is now welcoming the return of major international energy companies including bp, Shell and ExxonMobil. These moves mark a renewed interest in Libya’s vast untapped reserves and a potential turning point for the country’s energy future.
Libya holds more than 40 billion barrels of proven oil reserves, making it one of Africa’s most resource-rich nations. Most of these reserves are concentrated in the prolific Sirte Basin. However, technical setbacks and operational delays left much of its production capacity idle in recent years. With improved access and cooperation, that tide appears to be turning.
Shell, bp and ExxonMobil return to the fold
In August 2025, ExxonMobil signed a memorandum of understanding (MoU) with Libya’s National Oil Corporation (NOC) to carry out geological and geophysical studies across four offshore blocks. This agreement marks the company’s return to the country after more than a decade.
In July, bp signed its own MoU with NOC to explore the redevelopment of the Sarir and Messla oilfields — two of Libya’s largest. The agreement also includes the evaluation of unconventional oil and gas potential in the area. These fields have long been recognised for their large volumes and favourable geology.
Shell also re-entered Libya in July, signing an MoU with NOC to study the technically complex Al-Atshan field and other NOC-owned assets. The company plans to carry out feasibility studies focused on economic and technical viability before moving forward with any development plans.
Production goals target 2 million barrels per day
Libya currently produces around 1.38 million barrels of oil per day. With new international partnerships and redevelopment plans underway, the country aims to increase production capacity to over 2 million barrels per day. This level was last achieved in the mid-2000s and would significantly enhance Libya’s position in the global energy market.
Despite the renewed activity, several challenges must be addressed. Many facilities have aged or require modernisation, and some fields have experienced recurring shutdowns due to technical or logistical issues. There is also a need for investment in enhanced recovery techniques to maximise output from mature fields. The involvement of experienced international operators is expected to bring new technologies and operational expertise to help overcome these hurdles.
The return of major energy firms reflects growing confidence in Libya’s upstream potential. These early-stage agreements are focused on data analysis, feasibility studies and field assessments. If the results are positive, full-scale redevelopment and investment decisions could follow over the next one to two years.
Libya’s upstream revival remains in its early phase, but the combination of large reserves, strategic location and renewed international interest positions it as a key player to watch in the global energy landscape.
