Libya, Egypt, and Kuwait Target Major Oil and Gas Expansion

The oil and gas landscape in the Middle East and North Africa is witnessing significant developments as key players like Libya, Egypt, and Kuwait push forward with ambitious plans to increase their fossil fuel production and boost economic growth. These nations, all vital energy producers in the region, are making moves to revitalize their oil and gas sectors despite ongoing challenges, ranging from infrastructure issues to financial instability.

Libya Resumes Production at Mabruk Oilfield

After a decade-long shutdown, Libya has successfully resumed oil production at the Mabruk oilfield. On Sunday, production officially restarted at an initial rate of 5,000 barrels per day (bpd), with plans to ramp up to 25,000 bpd by July. The move is part of a broader strategy to increase Libya’s oil output, with the Libyan government targeting a production goal of 2 million bpd by 2028.

The country’s reliance on oil, which makes up over 95% of its economic output, means that increasing production is vital for reconstruction and economic recovery. The National Oil Corporation of Libya (NOC) is working to attract investments of between $3 billion and $4 billion to achieve an intermediate target of 1.6 million bpd, with new licensing rounds expected soon. Libya’s growing ambitions highlight the nation’s determination to recover from years of political instability and conflict.

Kuwait Eyes Major Oil Output Boost

Kuwait, another OPEC member, is also set to increase its oil production significantly. The country plans to nearly double its output from 2.4 million barrels per day to over 4 million bpd by 2035. This ambitious goal will be supported by investments and cooperation with international oil companies. Sheikh Nawaf al-Sabah, CEO of Kuwait Petroleum Corp., revealed that the bulk of the increase will come from the Neutral Zone shared with Saudi Arabia and domestic fields, while OPEC+ production quotas have restrained additional drilling.

Kuwait’s rich oil reserves, estimated at 101 billion barrels, make it the 7th largest globally in proven oil reserves. This vast potential positions Kuwait as a major player in future global oil markets.

Egypt Plans Multi-Billion Dollar Investments in Oil and Gas

Egypt, which is not part of OPEC but remains one of Africa's top energy producers, is also charting a course toward energy expansion. The country has signed a $7 billion agreement with international partners to build a petrochemical complex in New Alamein City, which will boost the nation’s energy exports. Egypt is looking to invest heavily in its oil and gas sectors to secure its energy future, with significant investment opportunities being offered in undeveloped fields in the Mediterranean and the Gulf of Suez.

The Egyptian government is also focusing on expanding its natural gas sector to meet growing domestic demand. However, with the Zohr gas field's production beginning to decline, Egypt has faced challenges in maintaining its gas output. Despite these challenges, Egypt has become the second-largest producer of natural gas in Africa and is keen to retain its position as a regional energy hub.

Additionally, Egypt’s energy diversification efforts continue, with the government aiming to have 40% of its energy mix sourced from renewable sources by 2030. Despite these goals, natural gas remains a critical component of the country's energy strategy for the foreseeable future.