TRIPOLI: Libya is turning to artificial intelligence (AI), automated drilling and high-speed communications networks to modernise its oil industry as it pursues an ambitious target of producing two million barrels of crude oil a day.
After years of political instability, infrastructure challenges and disruptions to production, the North African country is increasingly looking to technology to improve efficiency, reduce operating costs and extract more value from its vast oil reserves.
At the centre of this transformation is the National Oil Corporation (NOC), which is combining digital innovation with efforts to increase exploration, rehabilitate ageing infrastructure and attract investment into the country’s energy sector.
The strategy comes as Libya’s oil production recovers to levels not seen in more than a decade, creating an opportunity to modernise operations while expanding output.
Rather than relying solely on conventional drilling and infrastructure investment, the NOC and its partners are exploring how AI, automation and real-time data can help make oil production more efficient and reliable.
Oil production reaches highest level since 2013
Libya’s technological ambitions are gathering momentum alongside a recovery in crude oil production.
In June 2026, the NOC reported crude output of 1,438,560 barrels per day (bpd), alongside 49,163 bpd of condensate.
Combined production reached 1,487,723 bpd, representing the country’s highest reported level since 2013.
The figures marked an important milestone for an industry that has endured repeated disruptions linked to political instability, security challenges and ageing infrastructure.
NOC chairman Masoud Suleiman has urged the corporation to increase crude production to 1.5 million bpd before the end of 2026.
However, the country’s ambitions extend considerably further.
Libya is targeting crude production of two million bpd over the longer term, a goal that will require substantial investment in exploration, field development, infrastructure and operational efficiency.
Speaking at the Libya Energy & Economic Summit (LEES) in 2025, Oil and Gas Minister Dr Khalifa Abdulsadek highlighted the opportunities available to investors and domestic energy companies.
“There are massive opportunities here, massive fields that have been discovered,” he said.
Abdulsadek also stressed that Libyan businesses should benefit from the expansion of the country’s energy industry.
“We want to make sure local oil companies take part,” he added.
The emphasis on local participation forms part of a broader effort to ensure that the industry’s recovery supports domestic expertise, employment and technological development.
Libya looks to home-grown technology to transform oil production
One of the most significant developments in Libya’s energy modernisation drive is the New Energy Tech programme, launched by the Ministry of Oil and Gas in June 2026.
The initiative aims to connect the operational challenges facing oil and gas companies with the expertise of Libyan engineers, researchers, software developers, robotics specialists, AI professionals and technology start-ups.
Instead of depending exclusively on imported technological solutions, the programme encourages local innovators to develop systems suited to Libya’s operating conditions.
Under the initiative, energy companies identify specific challenges affecting their operations, allowing participating teams to design and test potential solutions.
Promising prototypes can then be matched with companies for further development and possible deployment in oilfields.
The programme focuses on improving operational efficiency, reducing costs, lowering emissions and strengthening decision-making through technology.
It also seeks to develop a new generation of Libyan professionals capable of supporting an increasingly digital energy industry.
University students and academics are being encouraged to work alongside experienced engineers and technology specialists, creating opportunities for collaboration between higher education institutions and the oil and gas sector.
For Libya, this approach could help build a domestic technology industry that supports oil production while developing expertise with applications beyond the energy sector.
AI-powered drilling delivers breakthrough at Al-Khair field
The potential of artificial intelligence in Libya’s oil industry became particularly evident in March 2026, when Sirte Oil Company, an NOC subsidiary, completed what was described as the country’s first fully autonomous AI-powered geosteering operation.
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The project was undertaken at the Al-Khair oilfield using technology developed by global energy technology company SLB.
Geosteering is a drilling technique that allows operators to adjust the direction of a well as it moves horizontally through underground rock formations.
Its purpose is to keep the drill within the most productive section of an oil-bearing reservoir, improving the chances of reaching commercially valuable resources.
Traditionally, the process requires continuous interpretation of geological information and decisions by specialist teams.
AI-assisted geosteering uses real-time data and automated decision-making to guide drilling operations more precisely.
At Al-Khair, the technology successfully guided a horizontal drilling section of approximately 1,800 feet through an oil reservoir measuring just 12 feet in thickness, according to an SLB case study.
The operation delivered significant efficiency gains.
Drilling speed approximately doubled, while the section was completed three-and-a-half days ahead of schedule.
The well subsequently recorded production of 1,060 barrels per day.
The results demonstrate how AI-assisted drilling can help operators navigate challenging geological formations while potentially reducing drilling time and associated costs.
For Libya, where increasing production from existing fields is an important priority, such technologies could play a growing role in improving recovery and extending the productive life of oil assets.
Connecting more than 200 oil and energy sites
Alongside advances in drilling technology, Libya is investing in the telecommunications infrastructure needed to support modern oilfield operations.
In December 2025, technology companies Aljeel Aljadeed Technology and Hatif Libya launched an Oil Fields Connectivity Project designed to connect more than 200 strategic energy locations.
The project covers over 80 oilfields and ports, providing a communications network capable of supporting increasingly data-intensive operations.
According to the project specifications, the network offers speeds of up to 100 gigabits per second, with the potential to expand to 400 gigabits per second.
It has also been designed to accommodate fifth-generation mobile communications technology, commonly known as 5G.
The infrastructure builds on agreements signed by the NOC in September 2024 under its Toward Smart Oil Cities initiative.
Those agreements, involving telecommunications operators Al-Madar, Libyana and Hatif Libya, sought to modernise connectivity in oil-producing regions.
Reliable communications are increasingly essential to modern oil production.
Connected equipment can transmit information about pressure, temperature, production volumes and mechanical performance from remote wells to central control facilities.
This allows engineers and operators to monitor conditions, identify emerging problems and make operational decisions without requiring personnel to travel to every installation.
In a country as geographically vast as Libya, where oilfields are often located far from major urban centres, remote monitoring could help reduce delays and improve the coordination of field operations.
However, the benefits will depend on the reliability of the network, cybersecurity protections and the ability of operators to integrate new digital systems with existing infrastructure.
From conventional oilfields to intelligent operations
Libya’s digital strategy reflects a wider transformation taking place across the international oil and gas industry.
Energy companies are increasingly using artificial intelligence, predictive analytics, automation and connected sensors to improve drilling accuracy, anticipate equipment failures and optimise production.
Predictive maintenance systems, for example, can analyse equipment data to identify potential mechanical problems before they result in costly shutdowns.
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Automated monitoring can help operators detect abnormal changes in production conditions and respond more quickly.
Digital technologies can also improve the management of energy consumption, equipment performance and operational emissions.
For Libya, these capabilities are particularly relevant as the NOC works to restore ageing facilities while expanding exploration and production.
The country’s oil infrastructure has experienced years of disruption, making reliability and efficient maintenance central to its production ambitions.
Nevertheless, technology alone will not deliver the two-million-barrel target.
Sustained production growth will also depend on investment, infrastructure rehabilitation, operational stability, technical skills and the ability to maintain consistent production across the country’s oilfields.
The digital transformation programme is therefore best understood as one component of a broader industry recovery strategy.
Building skills and opportunities for Libyan businesses
Beyond increasing oil production, the government’s technology initiatives could create opportunities for local businesses and skilled professionals.
The New Energy Tech programme, in particular, aims to strengthen connections between the energy industry and Libya’s growing community of technology developers and researchers.
By encouraging local companies to participate in designing and deploying digital solutions, the programme could help reduce dependence on imported expertise in selected areas.
It also provides opportunities for young professionals to develop skills in AI, software engineering, robotics, data analytics and industrial automation.
These capabilities are increasingly valuable across multiple sectors of the economy.
The development of local technical expertise could therefore support wider economic diversification, even as oil and gas remain central to Libya’s export earnings and government revenue.
For the country’s universities and research institutions, collaboration with energy companies also offers opportunities to translate academic research into practical industrial applications.
The challenge will be ensuring that promising innovations move beyond demonstration projects and become commercially viable solutions that can be deployed at scale.
Libya prepares to showcase its energy ambitions in 2027
The country’s technological transformation and production ambitions are expected to feature prominently at the Libya Energy & Economic Summit 2027, scheduled to take place in Tripoli from 23 to 25 January.
The gathering will bring together energy companies, investors, policymakers and technology specialists to examine opportunities across Libya’s oil and gas industry.
Discussions are expected to focus on exploration, upstream investment, infrastructure development, production growth and the technical capabilities required to deliver new projects.
The summit will also provide an opportunity to assess how digital technologies can contribute to Libya’s longer-term energy strategy.
With the NOC pursuing higher production and the government encouraging greater local participation, the country’s ability to attract investment while developing domestic expertise will be central to its ambitions.
Technology becomes central to Libya’s next oil boom
Libya’s pursuit of two million barrels of crude oil per day represents an ambitious undertaking for an industry still recovering from years of disruption.
The recent production gains demonstrate the potential of the country’s oil sector, but sustaining that momentum will require more than additional wells and infrastructure spending.
AI-assisted drilling, connected oilfields, automated monitoring and locally developed technologies are increasingly becoming part of the strategy.
The Al-Khair drilling operation has already provided an example of how advanced technology can improve efficiency, while the expansion of high-speed connectivity is laying the groundwork for more integrated field management.
At the same time, New Energy Tech is seeking to ensure that Libyan engineers, researchers and technology companies participate in shaping the industry’s future.
The success of these initiatives will ultimately depend on whether they deliver measurable improvements in production, operational reliability, cost management and technical capacity.
For Libya, the next phase of oil industry growth will not be determined solely by the size of its reserves, but increasingly by how effectively it uses technology, investment and local expertise to develop them.
