- Libya’s oil export revenue more than doubled to $17.863 billion in H1 2026
- Closure of Strait of Hormuz disrupted energy trade, pushing oil prices up 40%
- Libya aims to boost production to 2 million barrels per day via new partnerships
Libya, an oil-rich nation in the Middle East and North Africa (MENA) region, is emerging as one of the early beneficiaries of the disruption in global energy markets caused by the closure of the Strait of Hormuz, with the country's oil export revenues more than doubling in the first half of 2026.
Libya's economy ministry in the Tripoli-based government said on Tuesday that oil export revenues reached $17.863 billion in the first six months of 2026, compared with 51.1 billion Libyan dinars, or $8.05 billion, in the year-ago period, Al Jazeera reported.
The surge comes as the closure of Hormuz disrupts a major global energy route. Around one-fifth of global oil and a similar share of liquefied natural gas trade normally pass through the strait. The disruption has sharply curtailed Gulf supplies, pushing oil prices up more than 40% and gas prices higher.
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For Libya, a major crude exporter, the price rally has provided much-needed financial breathing room. The country produced around 1.4 million barrels of oil per day by the end of 2024, according to its National Oil Corporation.
Al-Estiklal reported that Libya is also seeking to use higher prices to boost future production. In February 2026, authorities launched the country's first oil and gas licensing round since 2007, targeting production capacity of 2 million barrels per day through partnerships with companies including Chevron, Eni, QatarEnergy and Repsol.
In January, state-owned Waha Oil signed a 25-year agreement with TotalEnergies and ConocoPhillips to expand production capacity from shared fields to 850,000 barrels per day. The agreement is expected to generate net revenues exceeding $376 billion.
The revenue gains, however, come with significant risks. Libya remains politically divided between rival administrations, with disputes over oil revenue distribution having previously triggered field, port and export-route shutdowns.
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The National Oil Corporation has said Libya needs $3-4 billion to restore production to its previous level of 1.6 million barrels per day.
Libya's dependence on crude also leaves it exposed to swings in global prices. Despite estimated gas reserves of around 80 trillion cubic feet, the country has yet to develop gas exports on a scale comparable with its oil trade, Reuters reported.
According to a report in Al-Estiklal, for Libya, the current windfall is significant but potentially short-lived. Any easing of the Hormuz disruption, decline in global crude prices or renewed domestic political instability could quickly erode the gains.
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