Libya moves closer to 2 million barrels a day as US-backed budget opens Africa’s largest crude reserves to American firms
Libya is moving closer to its goal of producing 2 million barrels of oil per day by the start of the next decade after a US-backed agreement on a unified national budget unlocked fresh funding for the country’s energy sector.
The budget allocates more than 13 billion Libyan dinars (about $2 billion) to the state-owned National Oil Corporation (NOC), providing a critical operating budget after the company received no funding in 2025.
The agreement marks Libya’s first unified budget since the country split into rival eastern and western governments in 2013, a development seen as a significant step toward political reconciliation. It also aligns with US President Donald Trump’s push to reunify the OPEC member while expanding opportunities for American energy companies to access Africa’s largest proven crude oil reserves.
The renewed focus on Libya comes as conflict in the Middle East continues to disrupt nearly a fifth of global oil and gas production, prompting international energy companies to seek new investment opportunities elsewhere.
Targeting higher oil output
Libya has already increased production to around 1.4 million barrels per day, its highest level in more than a decade. The NOC now plans to restart oil fields that have remained idle because of years of conflict and political uncertainty following the 2011 overthrow of longtime ruler Moammar Qaddafi.
To achieve its target of 2 million barrels per day by early 2031, Libya is seeking $16 billion in investments from international partners, alongside a planned $20 billion commitment from the NOC to modernise the country’s oil infrastructure.
The company has also secured a $1 billion loan from the Libyan Foreign Bank, which will finance projects aimed at raising production beyond 1.5 million barrels per day by mid-2027. Suleman said a second $1 billion loan will be released once that milestone is achieved.
Source: Africabusinessinsider