A freshly signed 25-year concession extension, $20 billion in planned upstream investment, and offshore gas and solar projects are converging — all targeting final investment decisions by end-2026
Libya is building toward one of its most consequential investment cycles in more than a decade, with a cascade of oil, gas, and even renewable energy projects all eyeing final investment decisions before the year is out. At the heart of the push is the North Gialo 6J oil development, which has been unlocked by a January 2026 amendment to the Waha Re-Entry Agreement — a deal that extends the concession by 25 years to 2050 and reshapes the fiscal terms for Libya’s flagship upstream asset.
North Gialo 6J is expected to add 100,000 barrels per day and 200 million standard cubic feet per day of gas, underpinning over $20 billion in planned foreign-financed investment across the broader Waha concession. Libya’s Prime Minister Abdulhamid Al-Dbeibeh said the agreement “sends a clear signal that Libya is serious about restoring and expanding its most strategic oil assets through fair, competitive terms.”
Beyond the headline project, the wider Waha concession is being groomed for phased growth toward 600,000 to 700,000 barrels per day. The NC-98 development and intensified infill drilling across legacy fields are expected to add a combined 180,000 barrels per day, supported by new processing facilities and export pipelines. Tendering for EPC contracts is active, with Saipem, Daewoo E&C, and Petrofac all in the running, though Petrofac’s financial instability has introduced some uncertainty into the process.
On the gas front, Eni and the National Oil Corporation are pushing the Bahr Essalam compression expansion toward a start-up by the end of the first quarter of 2026, which would add 100 million standard cubic feet per day and sustain flows to power plants domestically and to Italy via the GreenStream pipeline. Farther out, the $8 billion Structures A&E offshore gas project — targeting up to 760 million standard cubic feet per day — remains on track for completion by 2027, with EPC awards already underway and an integrated carbon capture element built into the design.
Renewables are also entering the picture for the first time in meaningful scale. TotalEnergies’ Al-Sadada solar project is approaching an FID targeted for late 2026, anchoring Libya’s 4-gigawatt renewable energy strategy and linking power supply to both the national grid and nearby oil infrastructure.
NOC officials describe the current execution momentum as materially stronger than at any point since 2011. The real test, however, will be whether Libya can convert aligned partners and reworked fiscal terms into sustained production growth beyond 2027.
Source: energycapitalpower.com