Libya's oil ambitions face Russian threat amid production boost
Libya is attempting to revitalise its energy sector by increasing oil production. Although the country plans to raise its daily production to 2 million barrels by 2025, the government in Tripoli is concerned about Russia's influence, as it may attempt to disrupt the export of this resource to Europe.
Libya has noticed an increase in Russian military presence in the eastern part of the country, where General Khalifa Haftar holds influence. Through these actions, Russia may deliberately destabilise oil supplies to Europe. Moscow's actions could lead to the displacement of Western oil companies from the Libyan market.
Russia's interest in Libya's oil
The country's oil reserves are estimated at 48 billion barrels, which attracts interest from energy giants such as Repsol, ENI, BP, and OMV. After years of sanctions imposed on Muammar Gaddafi's regime, the situation was moving towards stabilisation. However, last autumn, Europe felt the impact of the shutdown of El Sharara, one of the main oil fields, where production was approximately 48,000 tonnes per day.
Since December last year, the Spanish company Repsol has been drilling in a new field, and Tripoli is offering another 22 onshore and offshore sites for exploration. Russian involvement in Libya may also mean—in the context of the conflict with the West—various strategies to influence European energy markets, including the use of mercenaries and military equipment.
The growing presence of Russia in Libya and potential actions against resource supply could complicate the geopolitical situation on the continent. Libyan media report that Gazprom is poised to take over Spanish-French market positions, further emphasising the risks associated with Europe's energy dependence on Russian influence in the region.
At the end of August last year, we reported that oil fields in Libya limited their operations due to a stalemate in the dispute over the central bank. The country is embroiled in the conflict between the eastern Libyan authorities and the internationally recognised government of western Libya, which has led to disruptions in oil supplies and even the suspension of exports from some ports.
