Turkish Petroleum Plans Multibillion-Dollar Investment in Libyan Offshore Oil Fields

Turkish Petroleum (TPAO), the state-owned oil company, has announced plans to invest billions of dollars in the development of offshore oil fields in Libya. Ahmet Turkoglu, the company's director general, confirmed the plans during the Libya Energy and Economic Summit in Tripoli this week.

Turkoglu expressed TPAO's commitment to the region, noting that despite previous setbacks, the company believes in Libya’s immense potential and is eager to rebuild its relationships there. "We are ready to invest in this potential—whether through exploring new blocks or enhancing the performance and efficiency of current fields," he said. The focus will be on boosting production and efficiency, signaling TPAO's long-term strategy for the region.

Libya’s Oil Ambitions

Libya, home to North Africa’s largest oil reserves, is aiming to ramp up its oil production to 1.6 million barrels per day (bpd), with a long-term goal of reaching 2 million bpd. Khalifa Abdulsadek, Libya’s oil minister, emphasized the need for substantial investment to achieve this target. He indicated that the country requires around $3-4 billion to enhance its oil production capabilities.

The Libyan government is also planning to hold a new bidding round for oil and gas licenses by the end of this month, marking the first such round in 17 years. Areas to be included in the bidding will cover the country’s key sedimentary basins, including Sirte, Murzuq, and Ghadames, as well as marine zones.

Challenges and Opportunities

While Libya holds some of the most abundant oil resources in the region, its oil industry has faced significant challenges due to ongoing political instability and security concerns. Despite these hurdles, Libya managed to achieve a notable milestone in late 2024, reaching a daily output of 1.59 million barrels. However, the country’s average daily production currently hovers around 1.4 million barrels, with pre-civil war production levels exceeding 1.7 million bpd.

The new investment opportunities and oil licensing round aim to restore Libya’s oil industry to its former strength, with Turkish Petroleum poised to play a major role in this recovery.