Libya's Oil Revenues Hit $9.4 Billion in H1 2025

Libya's oil revenues reached 51.1 billion Libyan dinars ($9.43 billion) in the first half of 2025, according to the central bank. The country's oil industry is a significant contributor to its economy, and this revenue is a crucial indicator of the country's financial performance. The figure is based on the current exchange rate of 1 USD to 5.4200 Libyan dinars.

Libya's oil sector has been a significant driver of the country's economic recovery, but it also faces substantial financial challenges. According to the latest reports, Libya's oil revenues reached 51.1 billion Libyan dinars ($9.43 billion) in the first half of 2025, highlighting the sector's importance to the country's financial performance [1].

Despite the positive revenue figures, the oil sector has been marred by significant financial losses and corruption cases. An investigative report by journalist Mohamed Al-Qarj revealed that the sector suffered losses exceeding $294 million during the first half of 2025. The report identified seven major cases of corruption, including procurement violations, fraudulent invoices, and inflated contracts [2].

One of the largest violations involved Waha Oil Company, which awarded a procurement contract worth 769.9 million Libyan dinars (approximately $154 million) to a company named "Amwaj Al-Sidra" in violation of public procurement laws. Additionally, $140 million was paid through letters of credit without proper legal authorization, and defective drilling equipment was delivered amid suspicions of collusion [2].

The National Oil Corporation (NOC) has not issued any official statement or clarification regarding these contracts as of the end of June 2025. Al-Qarj described the sector as being "drenched in corruption," warning that such abuses jeopardize the stability of Libya's most vital economic resource [2].

While the oil sector faces these challenges, Libya's economy as a whole showed signs of recovery in 2024, growing by 7.5 percent in non-oil GDP despite a 6 percent decline in oil GDP. The World Bank's Economic Monitor for Libya projects a rebound in 2025, with GDP expected to grow by 12.3 percent, driven by an expansion in oil sector activities and private and public consumption [3].

However, the outlook for Libya's economy is clouded by uncertainty, particularly regarding political stability and energy prices. Increased political stability would provide significant benefits for the Libyan economy and population. The World Bank emphasizes the need for structural reforms to boost non-oil sectors and reduce hydrocarbon volatility [3].

In the energy exploration sector, Chevron Corp. and TotalEnergies SE are among the major players vying for opportunities in Libya's first energy exploration tender since the 2011 conflict. The tender aims to boost Libya's oil production to unprecedented levels, with the country seeking to increase its daily oil output to 2 million barrels by 2030 [4].

Despite these challenges, Libya's oil sector remains a critical component of its economy. Addressing corruption and improving governance are essential for ensuring the sector's stability and sustainability.

References:
[1] https://libyareview.com/57109/libyas-oil-sector-faces-huge-losses/
[2] https://libyaherald.com/2025/07/libyas-economy-showed-recovery-in-2024-remained-resilient-despite-reliance-on-hydrocarbons-and-ongoing-political-and-security-instability-world-bank/
[3] https://www.indexbox.io/blog/chevron-and-totalenergies-compete-in-libyas-energy-exploration-tender/