Libya is planning to increase its crude oil refining capacity from 300,000 barrels per day (bpd) to 400,000 bpd, according to the country’s Minister of Oil and Gas, Khalifa Abdulsadek.
“To boost exports, we must first address local demand, which is rising due to increased power generation needs,” the minister stated.
Libya’s National Oil Corporation (NOC) Chairman, Masoud Sulaiman, added that the country aims to raise oil production from its current 1.4 million barrels per day (mb/d) to 2 mb/d by 2028. However, achieving this target will require significant investment. Abdulsadek estimates that Libya will need between $3 billion and $4 billion to reach an interim goal of 1.6 mb/d. A new licensing round is expected to be approved by the government before the end of January. Oil plays a vital role in Libya’s economy, accounting for more than 95% of its output.
“There is momentum in reconstruction, which can only be supported by increased production,” Abdulsadek added.
Libya is not the only OPEC member aiming for higher production. Kuwait also has ambitious plans to expand its oil output. At the CERAWeek by S&P Global conference last year, Sheikh Nawaf al-Sabah, CEO of Kuwait Petroleum Corporation, revealed the country’s goal to increase its production from approximately 2.4 million barrels per day to more than 4 mb/d by 2035. This will involve collaboration with international oil companies. Kuwait’s onshore lifting costs are low, at just $10 per barrel, but it has limited drilling activity due to OPEC+ production quotas. The country expects to expand production through fields in the Neutral Zone shared with Saudi Arabia and its domestic reserves.
Kuwait, the world’s fifth richest country by gross national income per capita, holds 101 billion barrels in proven oil reserves, the seventh-largest globally. Its oil wealth plays a significant role in its economy, which is highly reliant on fossil fuels.
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