On rebuilding legacy assets and advancing transition goals
How would you characterise the current trajectory and outlook of the hydrocarbons sector?
MASOUD SULEMAN MOUSA : The hydrocarbons sector is undergoing a revival, marked by rising international investor confidence and reforms. The first licensing round since 2008 – under the fourth exploration and production sharing agreement – has attracted strong interest from 37 international companies, with 22 expected to bid actively across both onshore and offshore blocks. Revised terms and conditions aim to replace legacy models no longer acceptable to global investors, aligning contracts more closely with international standards. This is accompanied by a shift towards a profitability-based fiscal model. Legacy fields are being revitalised using enhanced recovery techniques such as electric submersible pumps and dormant wells are being brought back online. These efforts target production of 1.6m barrels per day (bpd) within 12 months, supporting economic recovery and macro-fiscal stability.
What are the main priorities for expanding domestic energy security and refining capacity?
SULEMAN MOUSA: The five refineries – three of which are currently operational – are undergoing upgrades to reduce reliance on imports and ensure fuel supply stability. Among key initiatives is the modernisation of the Azzawiya refinery to address long-standing shortages. The Libyan Emirates Oil Refining Company facility, inactive since 2013, is now fully Libyan-owned following a settlement and the acquisition of foreign-held shares. Legal finalisation is under way, to be followed by rehabilitation and capacity expansion to 220,000 bpd. This facility is expected to meet up to 80% of domestic demand. Additional plans include new refineries to generate surplus for export. These projects will be open to private investment, with NOC retaining a minority share and capital directed primarily towards upstream priorities. This model aims to attract local and inter-national partners to invest in downstream activities.
To what extent are long-term strategies being shaped by energy diversification?
SULEMAN MOUSA: Diversification is increasingly integral to Libya’s energy agenda. A dual-track approach maintains oil and gas as core pillars while accelerating the integration of renewables. Notable projects include a 500 MW solar photovoltaic plant near Misrata, developed in partnership with Total Energies, and the Ubari solar initiative, targeting the displacement of 20,000 bpd of oil-fired power generation. These initiatives fall under the Renewable Energy Authority of Libya, with support from the NOC. Smaller-scale solar systems are being deployed to power remote oil fields, reducing gas consumption and freeing up additional volumes for domestic use and export. Rising private participation in renewables reflects growing local capacity and contributes to broader economic diversification.
Which steps are being taken to modernise existing infrastructure, develop local talent and align with international environmental standards?
SULEMAN MOUSA: A broad modernisation programme is under way targeting hydrocarbons infrastructure that, in many cases, dates back to the 1960s. Investment is focused on pipelines, storage assets and production systems to improve efficiency, reduce downtime and uphold stringent safety standards. In parallel, efforts to strengthen human capital are gaining momentum, with emphasis on building a skilled national workforce. Libyans account for approximately 98% of operational staff across fields, terminals and offshore platforms, under-scoring a deep talent base. Environmental responsibility is also a central component of the long-term strategy. Libya is committed to eliminating routine flaring and significantly reducing methane emissions by 2030 in line with global benchmarks. These efforts aim to position the country as a resilient and a forward-looking energy producer, capable of both meeting domestic demand while also contributing to international energy security.
This interview serves as a preview of the in-depth analysis coming in The Report: Libya 2025.
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