Key Points
- Libya’s National Oil Corporation (NOC), under new acting chairman Massoud Suleman, aims to boost oil production to 2 million barrels per day (bpd) and enhance transparency to restore investor confidence amid years of political instability and operational disruptions.
- Libya requires 3−4 billion in investment to increase production to 1.6 million bpd, but political divisions and instability have deterred foreign investors, complicating efforts to revitalize the oil sector.
- NOC plans to streamline operations by potentially closing some subsidiaries and offices, including evaluating the Mediterranean Oil Services Company, to create a more efficient and manageable organizational structure.
Libya’s National Oil Corporation, NOC, is prioritizing increased oil production and greater transparency, according to newly appointed acting chairman Massoud Suleman. Speaking to reporters, Suleman emphasized the state oil firm’s commitment to stabilizing operations after years of disruptions caused by political instability, factional conflicts, and labor disputes.
Since the 2011 ousting of Muammar Gaddafi, Libya’s oil sector has been plagued by internal struggles, with production repeatedly falling due to disputes over leadership, particularly within the central bank, which controls oil revenues.
Despite these challenges, NOC was producing 1.4 million barrels per day (bpd) at the end of 2024, with a long-term goal of reaching 2 million bpd.
“The National Oil Corporation has a strategic plan to increase production that we will continue to implement and adjust whenever necessary,” Suleman stated in response to emailed questions.
Funding and Investment Challenges
Suleman also stressed the need to strengthen transparency within NOC, a move that may involve streamlining operations and shutting down some offices. NOC currently fully owns 15 subsidiaries and holds stakes in several joint ventures.
“I will focus above all on cementing transparency inside the National Oil Corporation so that any investor, whether the Libyan state or our foreign partners, can have confidence that any money injected into NOC will be used in the best possible way,” Suleman said.As part of the reform, NOC may shut down some branches, including those established in recent years. Suleman particularly mentioned evaluating the Mediterranean Oil Services Company, an NOC subsidiary responsible for procuring oilfield equipment and services.
“I will likely move cautiously towards evaluating some branches and closing some of them… especially some of the newly established branches,” he noted.
Mediterranean Oil Services currently operates offices in Düsseldorf, Germany, and Dubai, with a new branch reportedly opened in Istanbul in 2023. Suleman believes that reducing the administrative footprint could make NOC’s structure simpler and more efficient to manage.
As Libya navigates its political and economic challenges, the success of NOC’s expansion and reform strategy will be crucial in restoring investor confidence and stabilizing the country’s vital oil sector.
