Africa’s second-largest oil producer appeals to investors for over $40 billion to unlock vast reserves and raise output to 2 million barrels a day

Libya is seeking between $30 billion and $40 billion in investment to develop untapped oil and gas resources, modernise ageing infrastructure and bring more discovered fields into production as the North African country seeks to rebuild its energy sector.

The investment drive comes as Libya attempts to restore growth in an industry affected by years of political instability, underinvestment and security challenges.

With Africa’s largest proven crude oil reserves estimated at about 48 billion barrels, Libya remains one of the continent’s most important oil producers and has historically been a major supplier to international markets, particularly in Europe.

For decades, Libyan crude has been exported to European refiners because of the country’s proximity to the Mediterranean and its production of light, low-sulphur crude, which is preferred by many refineries.

Major buyers of Libyan oil have included Italy, Germany, Spain, France, Greece and the Netherlands, with European markets remaining among the country’s biggest destinations.

Before the 2011 uprising that removed Muammar Gaddafi from power, Libya produced more than 1.6 million barrels per day (bpd), with much of its crude flowing to European markets.

However, years of conflict, export blockades and infrastructure disruptions have caused production levels to fluctuate.

Libya currently produces about 1.4 million barrels per day (bpd) of crude oil and has set a target of increasing output to 2 million bpd by 2030.

The National Oil Corporation (NOC) says more than 60 discovered oil and gas fields remain undeveloped, creating opportunities for international energy companies to invest in exploration, production and infrastructure.

To attract more capital, Libya is considering reforms to its investment framework, including changes to production-sharing agreements that currently require the state oil company to finance part of development costs.

Under the proposed changes, international investors would take on more upfront financing responsibilities, allowing projects to progress faster.

Beyond its traditional European markets, Libya is also becoming part of Africa’s growing regional energy trade.

In 2026, Libyan crude entered Nigeria’s Dangote Petroleum Refinery, Africa’s largest refining facility.

Nigeria imported about 64,500 barrels per day of Libyan crude in May 2026, equivalent to roughly 2 million barrels during the month, marking the first recorded import of Libyan crude into Nigeria based on available trade data.

The supply came as Dangote Refinery expanded its crude sourcing network to maintain operations and meet demand.

Libya’s reserves and location have continued to attract interest from international energy companies seeking opportunities in North Africa.

Companies including Eni, TotalEnergies, Chevron and ConocoPhillips have maintained interests in Libya’s oil and gas industry.

However, investment has been slowed by political uncertainty, governance concerns and security risks.

Libya has recently secured new investment commitments. In July, the country signed an agreement with Qatar-based UCC Holding for exploration and production in Area 47, a project expected to attract about $1 billion in investment.

Despite its energy potential, Libya’s oil ambitions continue to face challenges from political divisions.

The country operates under competing authorities in the east and west, with major oil fields and export terminals located in areas controlled by rival factions.

Security concerns have also affected investor confidence. Recent drone attacks targeted the Zawiya refinery in western Libya, damaging fuel storage facilities and raising concerns over the protection of critical energy infrastructure.

Beyond production challenges, Libya faces economic pressure from fuel subsidies, imports and smuggling.

The NOC has warned that illegal fuel trade continues to place pressure on public finances and complicate efforts to reform the energy sector.