meed-logo

line1 line2 line3
SIGN IN / REGISTER

Libya has potential for energy project surge

6 July 2023

MEED's August 2023 report on Libya also includes:

> Libyan pipeline contract awarded
> Libyan oil company in pipeline procurement talks
> Libya’s Waha Oil plans water plant
> Halliburton in talks for $1bn Libya oil project
> Eni signs gas deal in Libya

 

After a string of major energy project announcements in the country, Libya will likely be on course for a surge in project activity as long as it can maintain political stability and security.

However, the current period of stability is looking increasingly fragile amid threats from the military leader General Khalifa Haftar, who has warned of military action unless oil revenues are divided fairly within the next two months.

Eastern politicians claim the Central Bank distributes the bulk of oil revenues to the rival UN-recognised government based in Tripoli, even though the oil is produced in fields largely based in the east of the country.

The US special envoy to Libya, Richard Norland – eager to keep oil production flowing – had urged the east not to disrupt production.

The heightened political tensions come after a promising period of increased business activity within Libya that many believe could still pave the way for a boom in the country’s energy sector – if conflict can be avoided.

Recent announcements include a partnership between Libya’s National Oil Corporation (NOC) and Italy's Eni to develop two regions containing expected gas reserves of 6 trillion cubic feet.

The upstream Mellitah complex integrated expansion is meanwhile estimated to be worth $8bn. It is anticipated to have a production capacity of 750 million cubic feet a day (cf/d) of gas for a period of 25 years.

The deal between Eni and NPC for the expansion project was announced in January, but in April MEED revealed that the project still needed board approval before tenders for the main contracts could be issued.

It is possible that stakeholders in this project, like many other major projects in the country, are taking their time before finalising the contract to better gauge the political and security environment before they commit to large-scale investment.

Security company licensing system overhauled in Libya

Political instability

Libya has been plagued by frequent outbreaks of conflict for more than a decade since the removal of Muammar Gaddafi during the Arab Spring in 2011.

Since his removal, rival factions have continually vied for power and the country has failed to create a unified government.

At the moment, the country has two rival governments. The Tripoli-based Government of National Unity (GNU) exerts control over territory in the west of the country, and the Tobruk-based House of Representatives controls territory in the east.

Elections planned for 24 December 2021 were expected to unify the country under a single government, but they never occurred and many of the contested issues that derailed the democratic process in 2021 remain unresolved.

Key problematic issues include the eligibility criteria for presidential candidates and how candidates with military affiliations should be treated.

It has been reported that both sides have agreed that candidates with military affiliations must automatically resign from their military posts if they become candidates, but debate remains over whether provisions should be in place to stop them from resuming their positions once the electoral process has concluded.

Additionally, both sides have agreed that dual nationals that want to stand as president should give up the citizenship of the second country, but no mechanism has been decided on to verify compliance.

While it is clear that undisputed elections and the formation of a single unified government are the best-case scenario, it is possible that the country’s business community and energy sector will prosper without this in place.

UK foreign office asked to relax Libya travel advice

Conflict cooldown

Since the June 2020 conclusion of Operation Flood of Dignity, a year-long campaign in which Tobruk-aligned military forces tried to capture Tripoli, Libya has seen a significant improvement in its security situation and an uptick in energy sector activity.

The increase in business activity since then has shown that the country can attract international businesses for multibillion-dollar projects without a single unified government in place.

Other business deals that have been announced include the signing of a contract between NOC and US-based Honeywell for engineering work on the planned South Refinery project in Libya.

The project is expected to be carried out in two phases and is anticipated to cost between $500m and $600m.

Additionally, Libya’s Waha Oil Company is in advanced talks with US-based Halliburton over a $1bn project to rehabilitate the country’s Al-Dhara oil field.

On top of the series of announcements regarding major projects with international companies, there has also been an uptick in small-scale energy project activity, according to contractors active in the country.

All this points to the future looking promising for the country’s energy sector, as long as stability and security can be maintained. However, keeping the peace is unlikely to be easy, given the precarious nature of the political situation.

Sudan situation

The ongoing conflict in Libya’s neighbour, Sudan, has sparked an influx of refugees into Libya and rising uncertainty about future stability.

Analysts have warned that increased arms trafficking could be part of the fallout from the ongoing war in Sudan as control over the country’s arms storage facilities and borders is reduced.

Further flows of arms into the south of Libya could potentially embolden militias in the region and erode security.

Additionally, before the conflict in Sudan, the African Union and Arab League played significant roles in mediating the unresolved issues between Libya’s two rival governments.

Likely, at least some of the resources that would previously have been used to try to strengthen stability in Libya will now have to be used to deal with the escalating crisis in Sudan.

Maintaining peace and finding common ground between Libya’s rival governments is likely to be critical to the future growth of the country’s energy sector and the broader economy.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10983464/main1954.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Contractors submit prices for Upper Zakum expansion project

    16 March 2026

     

    Contractors have submitted commercial proposals for the next expansion phase of the Upper Zakum offshore field development in Abu Dhabi, aimed at increasing the asset’s oil production potential to 1.5 million barrels a day (b/d).

    The offshore oil and gas production business of Abu Dhabi National Oil Company (Adnoc Offshore) has divided the UZ 1.5MMBD project’s engineering, procurement and construction (EPC) scope of work into three packages, MEED previously reported.

    Contractors submitted commercial bids for package 1 by the 23 February deadline and for packages 2 and 3 by the 27 February deadline, according to sources. The previous deadline for submission of commercial bids was 15 January.

    Adnoc Offshore is understood to have issued the main tender for EPC works for the UZ 1.5MMBD project in the third quarter of last year.

    Contractors submitted technical bids for package 1 by 21 November, while proposals for packages 2 and 3 were submitted by 14 November, MEED previously reported.

    In November 2024, MEED reported that Adnoc Offshore had awarded a contract for front-end engineering and design (feed) and pre-feed services on the project to France-headquartered contractor Technip Energies.

    A kick-off meeting between Adnoc Offshore and Technip Energies took place on 21 November 2024.

    Located 84 kilometres offshore in Abu Dhabi, Upper Zakum is the world’s second-largest offshore oil field and fourth-largest oil field.

    The UZ 1.5MMBD project is the latest crude output expansion undertaken by Adnoc Offshore at the Upper Zakum field development.

    Upper Zakum expansion

    The first phase of the programme to raise the Upper Zakum offshore field development’s oil production capacity to 1.2 million b/d was launched in 2019. The initial goal was to increase the field’s output potential to 1 million b/d by 2024, which was later increased to 1.2 million b/d, with the project execution timeline eventually extended.

    In April last year, MEED reported that Adnoc Offshore had awarded the main EPC contract for the UZ 1.2MMBD EPC-1 project to UAE-based Target Engineering Construction Company. The value of the contract was estimated to be $825m.

    The project’s main scope involved the EPC of several surface facilities and plants at the Upper Zakum offshore development’s four main artificial islands: Al-Ghallan, Umm Al-Anbar, Ettouk and Asseifiya – also known as Central Island, West Island, North Island and South Island, respectively.

    Spanish contractor Tecnicas Reunidas won the contract for the feed works on the UZ 1.2MMBD EPC-1 project in 2019. UK-headquartered Wood Group was appointed as the project management consultant for the EPC phase.

    In November 2024, MEED reported that Adnoc Offshore had also selected Target for the second phase of the Upper Zakum 1.2 million b/d project (UZ 1.2MMBD EPC-2). The value of the contract was estimated to be about $500m, according to sources.

    Target began work on the project in December last year, MEED previously reported.

    The scope of work on the UZ 1.2MMBD EPC-2 project covers the EPC of several structures on Assefiya Island.

    Adnoc Offshore performed the feed work on the UZ 1.2MMBD EPC-2 project in-house.

    Upper Zakum oil production

    Adnoc Offshore has committed to a total capital expenditure budget of approximately $30bn, along with its operating partners in the Upper Zakum hydrocarbons concession, Japan Oil Development Company (Jodco) and US-based ExxonMobil.

    The strategic objective is to first raise the asset’s oil output from 640,000 b/d to 750,000 b/d through the UZ 750 project, then to 1.2 million b/d through the two phases of the ongoing UZ 1.2MMBD project, and eventually to 1.5 million b/d.

    Zakum Development Company (Zadco), which later merged into Adnoc Offshore, awarded EPC contracts for the UZ 750 project in 2012 and early 2013.

    The $817m first package was awarded to a consortium of Abu Dhabi’s NMDC Energy (then known as National Petroleum Construction Company) and Technip Energies. Package two, the project’s largest EPC package, worth $3.7bn, was awarded to a consortium of UK-headquartered Petrofac and South Korea’s Daewoo Shipbuilding & Engineering.

    EPC work on UZ 750 began in 2014 and was completed in 2022.

    In October 2022, Adnoc Group subsidiary Adnoc Drilling set a world record for drilling the longest oil and gas well at the Upper Zakum concession, stretching 50,000 feet.

    The extended-reach wells will tap into an undeveloped part of the Upper Zakum reservoir, potentially increasing the field’s production capacity by 15,000 b/d without expanding or building any new infrastructure, Adnoc said.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/15996020/main.jpg
    Indrajit Sen
  • Neom cancels The Line tunnels contracts

    16 March 2026

     

    Register for MEED’s 14-day trial access 

    Neom has cancelled the contracts related to the construction of the tunnel sections of The Line in northwest Saudi Arabia.

    In a stock exchange announcement filed on 13 March, South Korean contractor Hyundai E&C said that Neom cancelled its contract on 29 December last year.

    Hyundai E&C was executing the drill-and-blast section of The Line’s tunnels in a joint venture with Greece’s Archirodon and South Korean counterpart Samsung C&T.

    The firm said its share of the joint venture was about 35%, amounting to $483m.

    Neom awarded contracts for constructing the mountain tunnel sections of The Line in June 2022.

    The drill-and-blast works were split into four packages, with two contracting teams winning two packages each.

    The other joint-venture team comprised Spain’s FCC, the local Shibh Al-Jazira Contracting Company (Sajco) and Beijing-based China State Construction Engineering Corporation. 

    The tunnels formed part of the infrastructure backbone of Neom’s 170-kilometre The Line development, launched in January 2021.

    What began as Crown Prince Mohammed Bin Salman’s defining symbol of a post-oil Saudi Arabia unravelled with quiet finality over roughly two years. By April 2024, planners were reportedly being forced to cut the initial phase to just 2.4km by 2030.

    By July last year, with the sovereign wealth fund facing tightening liquidity, the kingdom was reported to have conducted a “strategic review” to determine whether The Line was feasible – a process described as a “recalibration” of Vision 2030.

    Resources are now being directed to projects essential for the Fifa World Cup 2034, Expo 2030, and critical housing, healthcare and education targets.

    According to media reports, the government has pivoted towards repositioning what remains of Neom as an industrial and data centre hub, leveraging the Red Sea coastline’s access to seawater cooling for artificial intelligence (AI) infrastructure.

    READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15995688/main.gif
    Yasir Iqbal
  • Bidders get more time for Riyadh East sewage treatment plant

    16 March 2026

     

    State water offtaker Sharakat, formerly Saudi Water Partnership Company (SWPC), has extended the bid submission deadline for the Riyadh East independent sewage treatment plant (ISTP).

    The new deadline is 30 June. The original deadline was 2 April.

    The project will be developed under a build‑own‑operate‑transfer (BOOT) model with a 25‑year concession term.

    The plant will have a treatment capacity of 200,000 cubic metres a day (cm/d) in its first phase, expanding to 500,000 cm/d in the second phase.

    It includes the development of a treated sewage effluent transmission pipeline, forming part of the kingdom’s wider programme to expand wastewater treatment capacity through public-private partnerships.

    The request for proposals (RFP) was issued last October. 

    In 2024, Sharakat prequalified 53 companies that could bid for the Riyadh East ISTP, part of seven planned ISTP projects it said it would procure between 2024 and 2026

    WSP is the technical adviser and KPMG Middle East is the lead and financial adviser on the project.

    The targeted commercial operation date for the facility is 2029.

    ISTP plans

    Sharakat’s current ISTP portfolio includes 10 large plants that are operational, under construction or under tendering, with a combined initial treatment capacity of 1.79 million cm/d.

    These projects include North Taif, Jeddah Airport, West Dammam, Madinah 3, Buraydah 2, Tabuk 2, Al-Haer, Arana, Hadda and Riyadh East. 

    In December, two consortiums were selected for contracts to develop and operate the Hadda and Arana ISTP projects in Mecca province.

    That same month, Sharakat prequalified 63 developers for upcoming ISTP projects under a revised prequalification process.

    According to Sharakat’s newly released seven-year statement, it has identified six additional large ISTPs in the development pipeline.

    These include:

    • Kharj (75,000 cm/d)
    • Abu Arish (50,000)
    • Hafar Al-Batin (100,000)
    • Riyadh North (TBD)
    • Najran South (50,000)
    • Khamis Mushait (50,000)

    The company is also pursuing a nationwide small sewage treatment plant programme covering about 139 smaller ISTPs grouped into seven clusters.

    These are designed to add roughly 521,450 cm/d of additional treatment capacity across the kingdom.

    READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15993509/main.jpg
    Mark Dowdall
  • Modon launches Tara Park on Abu Dhabi’s Reem Island

    16 March 2026

    Abu Dhabi-based Modon Holding has launched the Tara Park residential project in the Reem Island area.

    The project comprises two residential towers with a total of 340 residential units.

    The development includes a 527-metre jogging track.

    The latest project launch follows Modon Holding’s launch of the Bashayer residential waterfront community on Hudayriyat Island.

    The project will comprise 157 four- and five-bedroom villas centred around a clubhouse with a rooftop infinity pool, and 330 one- to four-bedroom apartments across two low-rise buildings.

    The development comprises a 3.5-kilometre waterfront promenade and a park.

    In October last year, Modon Holding launched the Maysan residential development on Abu Dhabi’s Reem Island.

    This development covers an area of about 600,000 square metres.

    Maysan is being developed in several phases. The project’s first phase involves developing two districts: Mayar and Thoraya.

    The first district, Mayar, consists of 132 mansions. The four-storey mansions will be located within a gated community featuring a central park and walking trails.

    The second district, Thoraya, features 184 townhouses. It will include gardens, play areas, a gym and other associated facilities.

    READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15993317/main.jpg
    Yasir Iqbal
  • Jordan begins prequalification for Amman water project

    16 March 2026

    Jordan’s Ministry of Investment has issued a request for qualifications (RFQ) for a non-revenue water (NRW) reduction project in the southern and southeastern areas of Amman.

    The project will be delivered under a public-private partnership (PPP) model using a design, build, finance, operate and maintain structure. It aims to reduce water losses and improve the efficiency of water distribution networks in the targeted areas.

    The initiative is being led by the Ministry of Investment through its PPP unit in collaboration with the Ministry of Water & Irrigation, the Water Authority of Jordan and Miyahuna.

    The procurement is expected to attract international water operators, engineering contractors and infrastructure investors with experience in NRW reduction programmes.

    The bid submission deadline is 23 April.

    Jordan has prioritised reducing NRW as part of efforts to improve the efficiency of its water sector. The country is among the most water-scarce in the world, and losses from distribution networks are estimated to account for about 45% of water supplied.

    NRW reduction programmes typically involve measures such as network rehabilitation, leak detection, pressure management and improved metering to reduce physical and commercial losses across water systems.

    Jordan is also advancing its $6bn Aqaba-Amman water desalination and conveyance project that aims to meet about 40% of Jordan’s municipal water demand by 2040.

    As MEED recently reported, the project is nearing financial close. Once complete, it will supply about 300 million cubic metres of potable water a year from the Red Sea to Amman and other regions.

    In February, the Water Authority of Jordan signed a four-year performance-based management contract with France’s Veolia to support water and wastewater services in the country’s northern governorates.

    Under the contract, Veolia will provide operations, maintenance and management services to Yarmouk Water Company, the public utility responsible for water supply and wastewater services in the region.

    READ THE MARCH 2026 MEED BUSINESS REVIEW – click here to view PDF

    Riyadh urges private sector to take greater role; Chemical players look to spend rationally; Economic uptick lends confidence to Cairo’s reforms.

    Distributed to senior decision-makers in the region and around the world, the March 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/15993071/main.jpg
    Mark Dowdall