In March 2008, Libya produced 1.75 million barrels of oil per day (bpd). Since then, thanks to political instability, it has never reached that figure again. Will 2025 be the year Libya goes back to its peak crude oil production?
The country is the richest in terms of oil reserves in Africa, and its offshore oil and gas sector is a cornerstone of its energy industry.
In the last few years, some significant developments have begun to shape the Libyan oil market, which could signal positive news for the industry.
Recent developments in offshore fields like Bouri, Bahr Essalam, Sabratha, and Al Jurf, alongside new exploration initiatives, highlight Libya’s efforts to bolster offshore production through well intervention and infrastructure upgrades.
In fact, in December last year, Libya produced 1.4 million bpd, which is its best performing figure since 2013. The country has ambitions to reach 1.6 million bpd by year end.
A key development is the February resumption of gas production at Well CC18 in the Bahr Essalam offshore field, operated by Mellitah Oil and Gas (a joint venture between Libya’s National Oil Corporation (NOC) and Eni).
This restart likely involved well interventions such as coiled tubing or acid stimulation to address reservoir issues like scale buildup, ensuring consistent gas flow to the Mellitah treatment plant for domestic and European markets.
Similarly, the Sabratha Compression Project, in its execution phase with startup planned for late 2025, aims to enhance gas production.
Compression projects often require interventions like gas-lift optimisation to maintain well productivity, underscoring the role of advanced techniques in Libya’s offshore strategy.
The Bouri Gas Utilisation Project, another significant initiative, focuses on increasing gas output from the Bouri field, one of Libya’s largest offshore assets.
Operated by Eni and NOC, this project involves installing equipment to optimise production, likely supported by interventions such as perforating or chemical treatments to counter declining reservoir pressure.
Eni’s Structures A&E Project, with drilling set for mid-2025, channels gas from two offshore fields to Mellitah.
This project, involving new platforms and subsea infrastructure, will likely require well interventions like hydraulic fracturing to optimise new wells and ensure long-term productivity.
The adoption of AI-driven technologies by Eni suggests potential advancements in intervention efficiency, such as real-time monitoring to guide coiled tubing or wireline operations.
In January 2025, NOC launched its first exploration bid round in 17 years, offering 22 onshore and offshore blocks, including areas in the offshore Sirte Basin.
This initiative, attracting interest from companies like Repsol and BP, signals future offshore development.
New wells will eventually require interventions like well testing or stimulation to bring them online efficiently, building on Libya’s estimated 48 billion barrels of oil reserves, much of which lies offshore.
However, political instability poses significant risks. Only last month, Libya’s eastern-based government threatened a force majeure on oil fields and ports, following attacks on NOC facilities.
This echoed a 2024 shutdown that halted 700,000 bpd, impacting offshore fields like Al Jurf.
Such disruptions necessitate well interventions to restore production post-shutdown, as seen in Al Jurf’s history of workovers after prolonged closures.
Despite these challenges, Libya’s US$3–4bn investment plan for 2025 prioritises offshore infrastructure and interventions to achieve its production targets, reinforcing the sector’s critical role in the nation’s energy landscape.
