Libya's state energy firm has declared that the nation requires as much as $40 billion in capital expenditure to develop its hydrocarbon reserves, as it strives to reclaim its status among the world's premier crude oil producers. According to data from the U.S. Energy Information Administration, this North African country, which is administratively split between rival governments in the east and west, holds Africa's largest proven oil reserves and has recently attracted a wave of international petroleum companies seeking fresh opportunities.

However, Masoud Suleiman, chairman of Libya's National Oil Corporation (NOC), stated that a lack of funding is hampering project advancement. "Our country possesses vast, unexploited resources, and we need substantial capital, in the range of $30 billion to $40 billion," he said in an interview. Suleiman has set what he calls an "ambitious yet attainable" target of boosting Libya's daily crude output to 2 million barrels by 2030, up from the current level of roughly 1.4 million barrels. He noted that more than 60 oil and gas fields have already been explored domestically but have not yet been brought into production.

Foreign firms such as Eni, TotalEnergies, Chevron, and ConocoPhillips are active in Libya, yet political instability, corruption, governance concerns, and the NOC's own financial constraints have slowed the pace of investment. This month, multiple drone strikes have targeted infrastructure, including the Zawiya refinery in western Libya, where a gasoline storage tank was set ablaze and other facilities were damaged. A nearby power station was also hit by drone attacks. While Tripoli authorities have not identified the perpetrators, much of western Libya is under the control of militia groups.

Suleiman downplayed the attacks, saying they occurred only within a "limited geographical scope... perpetrated by a few outlaws," and that the state is working to "dismantle" these elements. He added that all oil and gas project sites are "far from conflict zones and have robust security arrangements." Under Libya's production-sharing agreements, the state-owned company is responsible for covering its share of development costs, leaving projects vulnerable when government funding is delayed. Suleiman revealed that the NOC is therefore considering a return to concession-style agreements, where investors shoulder more of the upfront burden.

"We are contemplating a shift in the collaboration model between the NOC and our international partners. We are severely hampered by funding shortages, which has greatly delayed development projects," he stated. The NOC is exploring two pathways: reinstating concession agreements or refining the current production-sharing terms to permit investors to inject more capital. An early example of this transition emerged in July, when the NOC signed a cooperation deal with Qatar-based UCC Holding for Block 47 without a competitive tender. The conglomerate is led by the Hayat brothers, billionaires with Syrian and Qatari nationality. Suleiman defended the direct negotiation, noting that UCC and its partners will fully finance the project, and that the NOC's production share will increase after ten years.

To bolster credibility with foreign investors, Suleiman mentioned that the NOC plans to hire two external audit firms, K2 Integrity and KBR, to demonstrate transparency. "We have re-established trust with our partners," he said. "They are satisfied with our transparency and governance." The fragmented political landscape adds further obstacles to attracting capital. Most of the country's major oilfields and export terminals fall within the sphere of influence of Khalifa Haftar, the strongman controlling the east. The west, centered on Tripoli, is governed by the U.N.-recognized Government of National Unity, which relies on a patchwork of armed factions. Haftar and his forces have previously blockaded oilfields and ports.

A U.N. panel of experts reported in March that armed groups linked to both eastern and western power circles have the capacity to interfere with the NOC's operations. Suleiman acknowledged that while all parties in the divided nation recognize the importance of maintaining the NOC as a unified state institution, the entity faces pressure from multiple sides. "We maintain good relations with all parties, traveling between east and west to meet directly with key representatives," he said. He added that foreign investors also need to engage with the factions controlling project locations to "ensure smooth execution."

Even with oil prices elevated due to U.S.-Israel-Iran tensions and a recent allocation of around $2 billion from the national budget for NOC operating expenses, the company's financial difficulties persist. Suleiman stated that the allocation is insufficient, and the NOC hopes to retain $6 to $7 per barrel produced to sustain its operations. U.N. experts noted that the NOC imports about 80% of its fuel at international prices while selling domestically at heavily subsidized rates. Meanwhile, a large and lucrative smuggling trade is controlled by armed factions protected by political figures on both sides of the country's divide. "Smuggling is severely damaging our economy," Suleiman warned. "This is beyond our control and mandate, and immediate action is required, or Libya will head toward economic collapse."