TRIPOLI, Libya, January 15, 2024/ -- Speakers participating during a finance panel at the Libya Energy & Economic Summit (LEES) this week shared that the country’s planned licensing rounds – for domestic companies as well as an international tender – will be launched soon, in line with national targets to more than double oil production.

Mohamed Al-Hwej, Libya’s Minister of Economy and Trade, outlined the nation's ambitious goals, stating, "We have a lot of oil reserves, and our 8% market share will increase.” Minister Al-Hwej explained that with enough foreign investment, the country could likely achieve three million barrels per day goals. “The new Libya is here," he remarked.

With over 48 billion barrels of proven crude reserves and 53 trillion cubic feet of natural gas, Libya is well positioned to rebuild its economy on the back of hydrocarbons and enhanced local participation. The country is ready to welcome foreign investment, with the government recently implementing a series of legislative reforms while advancing infrastructure development and the deployment of renewable energy.

Ahmed Gaddah, Partner at Eltumi Partners, stated that, “Libya has great potential, and we have local capacity with Libyan insurers and contractors." He stressed the importance of a mature legal system for petroleum, which guarantees industry stability and growth.

Echoing these remarks, Zakaria Alhassan Albarouni, CEO of Albaraka Insurance Company, highlighted the four pillars crucial for Libya, namely, regulatory, insurance, financing, and risk investment. He affirmed, "We provide coverage that allows banks to fund projects."

In the development of the industry, Libyan-based finance providers have a critical role to play. Assad Riyany, Head of Libya Business Desk at Bank ABC, addressed banking challenges. "As a local bank, we face restrictions. Resolving security restrictions will uplift the banking sector. The challenge is how to assess risks; government or banking intervention can expedite progress."

As such, both local and foreign investment have emerged as the linchpins to unlocking Libya’s vast potential in oil and gas, growing the economy while positioning Libya as the supplier of choice for high-demand markets such as Europe.

Václav Bartuška, Special Envoy for Energy Security from the Czech Republic, emphasized that "for decades to come, the world will need oil and gas. Libya can help with that."

Meanwhile, for the local economy, oil and gas is integral, representing the key to bolstering energy access, industrialization and long-term gross domestic product growth. Azza Kamel Maghur, Senior Business Strategy Advisor at Murzuq Oil Services, reinforced the centrality of the oil industry to Libya's economy. "The oil in Libya is the glue of our economy," she said.  

However, Libya is also uniquely positioned to lead in regional sustainable energy development. Abundant renewable energy potential has already begun to attract foreign players, while the government remains committed to steering an energy transition through low-carbon solutions.

John Bell, Managing Director of Gulfsands, introduced the concept of a gradual transition from hydrocarbons. He urged an accelerated pace, stating, "Decarbonization projects, including gas flaring reduction, are crucial to supporting the transition.” In these areas, he emphasized that “Libya is ready for investment."