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Libya Seeks to Restore its Shares in Global Energy Markets

Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar. (Asharq Al-Awsat)
Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar. (Asharq Al-Awsat)
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Libya Seeks to Restore its Shares in Global Energy Markets

Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar. (Asharq Al-Awsat)
Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar. (Asharq Al-Awsat)

Libya is seeking to restore its shares in the global oil and gas markets, after establishing production stability at 1.2 million barrels per day, announced Undersecretary of the Libyan Oil Ministry, Refaat Mohammad al-Abbar.

Speaking to Asharq Al-Awsat, Abbar indicated that the country is currently seeking to protect its shares in the global oil market and benefit from the price recovery.

The official noted that political disagreements delayed the necessary approvals for the sector's budgets, causing losses in billions.

Oil prices are currently trading above $80 per barrel, an over 60 percent increase since the beginning of the year, while gas prices have jumped more than 800 percent.

Libya is a member of OPEC and constantly cooperates with member states to achieve market stability, said the minister, adding that it seeks to be part of the solution of the global energy crisis and high prices, which affect producers in the long term, even if prices are recovering.

He announced that Libya aims to produce more than two million barrels per day during the following year and four million barrels per day in 2025, noting that these targets need about $12 billion in development, maintenance, and rehabilitation operations.

The official said the oil sector's major challenges are obtaining finances to pay the debts, carrying out maintenance, and reaching production targets.

“We are working with the National Oil Corporation to develop the productivity of the fields,” he stated, adding that the Ministry aims to maintain the stability of exports.

Moreover, the ministry wants to hold international oil and gas conferences during the coming period in Tripoli and Texas, the US, to attract foreign investments to the Libyan oil sector.

“We are making great efforts to overcome obstacles and attract foreign investments, which will certainly contribute to consolidating stability in the country and enhancing the efforts of the oil and gas sector to achieve production targets, develop reserves and create job opportunities,” stressed Abbar.

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Iran’s Energy Sector: A Long History of Sanctions and Instability

Abadan oil refinery facility in southwestern Iran (Reuters)
Abadan oil refinery facility in southwestern Iran (Reuters)
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Iran’s Energy Sector: A Long History of Sanctions and Instability

Abadan oil refinery facility in southwestern Iran (Reuters)
Abadan oil refinery facility in southwestern Iran (Reuters)

Israel launched airstrikes on Iran Friday, targeting nuclear facilities, ballistic missile factories, and senior military commanders. The operation, which Israeli officials warned could be “prolonged,” is intended to prevent Tehran from developing nuclear weapons.

Iran’s National Oil Refining and Distribution Company confirmed that its oil refining and storage facilities were not damaged in the attacks. Similarly, the Abadan Oil Refining Company announced it was operating at full capacity with no service disruptions.

Iran is the third-largest oil producer in OPEC, pumping approximately 3.3 million barrels per day, about 3% of global output.

Sanctions and OPEC Role

Iran’s oil production peaked in the 1970s, reaching a record 6 million barrels per day in 1974, more than 10% of global supply at the time, according to OPEC data.

The first US sanctions were imposed on Tehran in 1979, and Iran has since remained under recurring waves of American and European restrictions. In 2018, President Donald Trump withdrew from the nuclear deal and reimposed strict sanctions, sending Iran’s oil exports plummeting—sometimes to near zero.

Under President Joe Biden, however, exports began to climb again. Analysts say enforcement has been less aggressive, and Iran has increasingly succeeded in evading restrictions. It’s also important to note that Iran is exempt from OPEC’s production quotas.

In recent months, Iranian oil exports have surged to around 1.8 million barrels per day—the highest since 2018, fueled by strong demand from China. Beijing does not recognize unilateral sanctions against its trade partners. Private Chinese refineries remain the main buyers of Iranian crude, despite some being targeted by recent US Treasury sanctions. So far, these measures have had limited impact on the flow of Iranian oil to China.

Iran continues to skirt sanctions using tactics like ship-to-ship transfers and by concealing tanker locations.

Production and Infrastructure

Energy consultancy FGE reports that Iran refines around 2.6 million barrels per day of crude and condensates, while exporting an equivalent amount that includes crude, condensates, and refined products. Iran also produces 34 billion cubic feet of natural gas daily - about 7% of global production - all of which is consumed domestically.

Most of Iran’s oil and gas infrastructure is concentrated in the southwest: oil fields in Khuzestan, gas in Bushehr, and condensates from the massive South Pars field. About 90% of crude exports pass through Kharg Island.

While OPEC members theoretically have the capacity to offset a drop in Iranian supply, many are already operating near their limits, placing pressure on the group’s spare production capacity.