Libya: royalties, taxes and NOC take on crude oil
- Main law
- Petroleum Law No. 25 of 1955, in force 3
- State oil company
- National Oil Corporation (NOC) 4
- Contract model
- Exploration and production sharing agreements, EPSA IV standard 6
- Oil revenue, 2025
- LYD 99.6 billion 1
- Oil royalties, 2025
- LYD 17.2 billion 1
- Oil revenue and royalties transferred to the central bank, 2025
- US$22.1 billion 1
- Crude production, 2024
- 1.1 million barrels per day 2
- Hydrocarbon revenue, 2024
- 55.4% of GDP 2
The legal base
Petroleum Law No. 25 of 1955 is still in force, according to the IEA policies database, last updated on 24 June 2025 3. Under the law, all crude petroleum in Libya is the property of the state. No one may explore for or produce petroleum without a permit or concession 3.
The law set up a Petroleum Commission with authority to grant, assign, renew and cancel concessions. It defines the taxes, fees, rents and royalty rates that apply 3.
Production sharing with the NOC
Foreign companies hold acreage through EPSAs signed with the NOC. In a company statement dated 12 December 2019, Wintershall said its Concessions 96 and 97 were converted to the EPSA IV contractual standard, with economic effect from 1 January 2008 6.
The Libyan Government ratified both agreements before signature. A joint operating company, Sarir Oil Operations, is 51% owned by the NOC and 49% by Wintershall. The two EPSAs run to 2036 and 2037 6.
On 11 February 2026 the NOC named the winners of its first public exploration bid round in more than 17 years. The round offered 20 blocks 4. The NOC statement did not publish the production shares or bonuses bid 4.
What the state collected in 2025
The Central Bank of Libya publishes a monthly revenue and expenditure statement. Its statement for 1 January to 31 December 2025 was issued in Tripoli on 19 January 2026 1.
| Revenue line, 2025 | Amount |
|---|---|
| Oil revenue 1 | LYD 99.6 billion 1 |
| Revenue from oil royalties 1 | LYD 17.2 billion 1 |
| Tax revenue, all sectors 1 | LYD 2.8 billion 1 |
| Revenue from fuel sales in the local market 1 | 0 1 |
| Total revenue 1 | LYD 136.9 billion 1 |
| Oil revenue transferred to the central bank 1 | US$18,792,380,983.95 1 |
| Royalties transferred to the central bank 1 | US$3,259,994,606.26 1 |
IMF findings on oil revenue
The IMF 2025 Article IV report, Country Report No. 25/148 of June 2025, put revised 2024 oil revenue at LYD 129.8 billion out of total revenue of LYD 163.5 billion 2. It put crude production at 1.1 million barrels per day in 2024 and exports at 0.9 million barrels per day 2.
The report said a fuel swap arrangement was cancelled in April 2025. The IMF said this should let the central bank regain full control over oil export revenue, and that the swap had created governance concerns 2.
The IMF found that a lack of fiscal transparency facilitates corruption. It recommended online publication of audited fiscal accounts and annual oil revenue reports, reform of NOC governance and adherence to the Extractive Industries Transparency Initiative 2. Energy subsidies were 25% of GDP 2.
NOC disclosure
On 1 January 2026 the NOC said it was publishing a report on oil revenues for fiscal years 2024 and 2025. The NOC said the report includes monthly royalties and minimum and maximum crude prices 5. It said data on partners' shares, natural gas and fuels for 2025 would follow 5.
Common questions
What law governs oil in Libya?
Petroleum Law No. 25 of 1955 is in force. It makes all crude petroleum state property and sets royalties, rents, taxes and fees 3.
How much oil royalty did Libya collect in 2025?
The Central Bank of Libya reported LYD 17.2 billion of oil royalty revenue in 2025. Royalties transferred to the bank were US$3,259,994,606.26 1.
What is an EPSA in Libya?
An exploration and production sharing agreement signed with the NOC. Wintershall said its concessions were converted to the EPSA IV standard in 2019 6.
Is Libya an EITI member?
No. The IMF recommended in June 2025 that Libya adhere to the Extractive Industries Transparency Initiative 2.
Rules and fees change. Check the official site linked above before you apply or pay. Spotted an error? Email [email protected] with the official link.
Sources
- Central Bank of Libya: Revenue and Expenditure Statement from 1st Jan to 31 Dec 2025 (19 January 2026)
- IMF: Libya 2025 Article IV Consultation, Country Report No. 25/148 (June 2025)
- IEA Policies Database: Petroleum Law No 25 of 1955 (updated 24 June 2025)
- National Oil Corporation: NOC names winners of latest oil exploration bidding round (11 February 2026)
- National Oil Corporation: report on oil revenues for 2024 and 2025 (1 January 2026)
- Wintershall Dea, company statement: EPSA agreements signed with Libya's NOC (12 December 2019)
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