Libya Seeks Tens of Billions for Oil Revival Amid Security Risks

The National Oil Corporation (NOC) of Libya is seeking tens of billions of dollars in foreign capital to revive the country's oil production. According to NOC President Masoud Suleiman, the company needs this financing to reach its production target by the end of the decade.

The need for external financing stems from the structure of Exploration and Production Sharing Agreements (EPSA), which requires the state company to co-finance a share of development costs. This is difficult for NOC due to its fragile cash position, which is caused by a state budget allocation deemed insufficient relative to operational needs.

To address this liquidity constraint, NOC's leadership has raised the possibility of retaining a fixed share of the value of each barrel produced to cover operating expenses. It also considers a return to concession-style arrangements, where the foreign investor bears a larger share of upfront costs.