Libya’s oil industry is roaring back to life, and the world is taking notice. In a move that could reshape the global energy landscape, Libya’s National Oil Corporation (NOC) has just announced a significant onshore oil discovery in the Ghadames basin, near the Algerian border. But here’s where it gets even more intriguing: this isn’t an isolated event. It’s part of a broader resurgence in Libya’s oil sector, fueled by improved security conditions and the return of major international players.
The latest discovery, made by NOC’s subsidiary Arabian Gulf Oil Company (AGOCO), was confirmed in well H1-NC4. Initial estimates suggest it could produce around 4,675 barrels of crude oil per day, along with approximately 2 million cubic feet of gas. This comes hot on the heels of another major find announced last week by the Libyan subsidiary of Austrian energy firm OMV, which struck oil in Block 106/4 of the Sirte Basin—a region renowned for its vast petroleum reserves. OMV’s well is already producing over 4,200 barrels of oil daily, with gas output expected to surpass 2.6 million cubic feet per day. And this is the part most people miss: these discoveries mark the first successes under the Exploration and Production Sharing Agreement (EPSA) signed in 2008, signaling a new era of collaboration between Libya and global energy giants.
But here’s where it gets controversial: After more than a decade of absence, foreign oil companies are flocking back to Libya, raising questions about the country’s stability and the long-term sustainability of these investments. OMV, for instance, resumed operations in late 2024, following a 13-year hiatus triggered by the fall of Muammar Gaddafi and the ensuing civil war. Similarly, Algerian state energy firm Sonatrach restarted drilling in the Ghadames basin in October, while Italy’s Eni resumed offshore exploration after a five-year pause. Even supermajors like BP and Shell have inked deals with NOC to explore Libya’s untapped oil and gas fields. Is this a sign of confidence in Libya’s future, or are these companies taking a risky bet?
For beginners, it’s important to understand that Libya’s oil reserves are among the largest in Africa, making it a critical player in the global energy market. However, the country’s political and security challenges have long deterred foreign investment. The recent improvements in stability have opened the door for a resurgence, but the question remains: can this momentum be sustained? What do you think? Is Libya’s oil comeback a game-changer, or is it too soon to celebrate? Share your thoughts in the comments below—this is a conversation worth having.
