Shifting Sands: Libya’s New Gas Venture

28 August 2025

Libya’s National Oil Corporation (NOC) has announced the establishment of Jalyanah, a new company dedicated to gas exploration and production, headquartered in Benghazi.

Acting chairman Masoud Suleiman outlined plans for Jalyanah to develop gas discoveries in concession MN 7, currently operated by the Arabian Gulf Oil Company. Negotiations are already under way with a major international consortium, including Eni, TotalEnergies, ADNOC, and TPAO, reflecting Libya’s ambition to forge partnerships across Europe, the Middle East, and Turkey.

The initiative aims to accelerate production from undeveloped fields, addressing rising domestic demand for power and industry while reducing costly diesel dependency. It also safeguards Libya’s export commitments to Italy and protects the state budget from potential penalties.

Investors face questions over viability, however. Libya remains politically divided, with the Government of National Unity (GNU) in Tripoli and the Government of National Stability (GNS) in Benghazi each asserting legitimacy. Any new entity based in the east inevitably raises considerations around legal clarity, governance, and contractual security.

Yet there is reason for cautious optimism. By approaching the venture through a lens of enlightened self-interest, the shared objective of monetising gas reserves and meeting domestic energy needs could create common ground between east and west. In a country long hindered by division, Jalyanah may become a platform for cooperation rather than conflict.

For global energy players and commodities traders, the project represents both an opportunity and a watchpoint: unlocking reserves of strategic importance while navigating a complex political landscape.