Oil & Gas

Libya’s oil sector recorded a strong performance in 2025, with crude oil production reaching a 10-year high of 1.4 million barrels per day (bpd), according to the National Oil Corporation (NOC). The surge in output translated into a sharp rise in earnings, as oil revenues climbed by more than 18 percent to nearly US$22 billion over the year.

The provisional authorities are intensifying efforts to rehabilitate the country’s hydrocarbon industry and expand production capacity to 1.6 million bpd. As part of this push, Libya is set to launch its first oil exploration licensing round in more than 17 years in February, signaling renewed momentum to attract investment and unlock additional reserves.

Operational performance across key fields also improved. In 2025, production at the Sarir field in southeastern Libya averaged 59,000 barrels of oil per day alongside 59 million cubic feet of gas, while the Mabrouk field in the Sirte Basin delivered 24,000 barrels of oil and 55.4 million cubic feet of gas per day.

Nafusah Oil Operations, a joint venture, reached peak daily output of 12,000 barrels of oil and 12.5 million cubic feet of gas. NOC also reported saving around 100 million cubic feet of gas as it advances towards its goal of achieving zero gas flaring.

Downstream capacity is also expanding, with NOC subsidiary Zallaf developing a 30,000 bpd refinery in the desert oasis town of Ubari. Libya currently operates five major refineries, led by the 220,000 bpd Ras Lanuf facility on the Mediterranean coast.

Although exempt from Opec production quotas, the country has set an ambitious long-term output target of between 2 million and 3 million bpd, underscoring its intention to restore its position as a major oil producer.