Libya on Monday voiced a powerful dedication to renewing earlier agreements with Türkiye, looking for to finalize a free commerce deal and increase investments with its largest industrial associate.
The North African nation is seeking to diversify its economic system past oil and considers Türkiye as a strategic associate in attaining sustainable improvement, its Economy and Trade Minister Mohamed Al-Hwej mentioned.
Libya has Africa’s most ample hydrocarbon reserves however is struggling to get better from years of battle after the 2011 NATO-backed rebellion that overthrew longtime dictator Moammar Gadhafi.
It has since been cut up between a U.N.-supported authorities within the capital, Tripoli, and rival authorities primarily based within the east. Each aspect has been backed by completely different armed teams and international governments.
There have been frequent blockades of oil installations, usually due to social calls for or political disputes.
Al-Hwej’s remarks got here on the sidelines of the Libya Energy and Economic Summit within the capital metropolis of Tripoli.
“This summit is about energy because we know there is no economy without energy. Whether it’s transportation, industry, agriculture or services, energy forms the backbone of economic activity,” he informed Anadolu Agency (AA).
Türkiye has been a big supporter of Libya and its Tripoli-based Government of National Accord (GNA).
The two states noticed nearer ties lately, particularly after the signing of safety and maritime boundary pacts in late 2019, together with Ankara’s help to assist the legit U.N.-backed Libyan authorities push again putschist Gen. Khalifa Haftar’s forces.
The deal over the Eastern Mediterranean demarcated the international locations’ shared maritime borders to stop any fait accompli by regional states.
The two international locations additionally signed an power exploration settlement in October 2022 to discover hydrocarbons in Libya’s unique financial zone and the mainland by Türkiye.
Highlighting Türkiye’s profitable financial mannequin, the minister added, “Türkiye’s experience is one of the best in the short term, and we hope to benefit from this expertise.”
The minister described Türkiye as Libya’s prime industrial associate, noting that Ankara’s position extends past commerce.
“We now see Türkiye as a strategic partner in every sector, including infrastructure, the petroleum industry, services, energy, health care and economic development,” he mentioned.
FTA talks to renew
The minister revealed that Libya is getting ready to renegotiate and renew earlier agreements with Türkiye, with the purpose of reaching a free commerce settlement (FTA) and selling funding.
“We recently met with the Turkish trade minister. We now aim to finalize a free trade agreement, encourage investments and update all prior agreements and memoranda of understanding,” he said.
Libya and Türkiye, each members of the Organisation of Islamic Cooperation’s Standing Committee for Economic and Commercial Cooperation (COMCEC), are additionally working to finalize a double taxation avoidance settlement.
“We have already presented a comprehensive project on this, and it is close to being signed,” Al-Hwej mentioned, including {that a} undertaking at no cost commerce and exemption from double taxation was additionally proposed.
“We will meet with Türkiye’s trade minister and other relevant ministries to finalize this free trade agreement between Libya and Türkiye, overcoming all challenges between the two countries,” he mentioned.
‘Long-term strategic associate’
The minister confused the significance of eradicating obstacles to commerce and facilitating private-sector partnerships.
“Libyan businessmen and the private sector prioritize Türkiye because they see it as a key player in Libya’s next phase of economic development. We consider Türkiye a long-term strategic partner,” he added.
The minister emphasised that Libya’s strategic location as a gateway between North and South, East and West, mixed with its huge power assets, positions power as a cornerstone of the nationwide economic system.
“We are prioritizing Türkiye within the framework of previous agreements and memoranda of understanding,” Al-Hwej mentioned.
“Turkish companies are welcome to participate not only in exploration activities but also in the downstream sectors such as refining and petrochemicals. As the Ministry of Economy, we are committed to providing all possible legal facilitations for these partnerships,” he mentioned.
Al-Hwej mentioned Libya prioritizes partnership with Türkiye “because of our long shared history.” The minister expressed confidence in Libya’s financial trajectory.
“Libya is undergoing a rapid transition toward sustainable economic growth. In this environment, we expect our growth rate to surpass that of other Mediterranean countries. We will take practical steps toward these goals,” he concluded.
TPAO eyes alternatives in Libya
Separately, Turkish Petroleum Corporation’s (TPAO) prime govt mentioned the state power firm is able to spend money on Libya’s power sector, banking on the nation’s huge untapped assets.
Speaking on the sidelines of the Libya Energy and Economic Summit (LEES) 2025 in Tripoli, General Manager Ahmet Türkoğlu underscored TPAO’s renewed curiosity in Libya as a part of its international growth technique.
“We are here because we see great potential,” Türkoğlu mentioned on Sunday, citing the North African nation’s ambition to spice up oil manufacturing to 2 million barrels per day. “I am sure Libya will achieve much more.”
Oil manufacturing in Libya had hovered for a decade at round 1.2 million barrels per day however rose to 1.4 million barrels per day in early December.
Pre-uprising output was between 1.5 million and 1.6 million barrels per day.
Türkoğlu reiterated Ankara’s confidence in Libya’s power prospects, stating that TPAO is able to commit important investments.
“In the past, we invested but unfortunately had to leave. Now, we plan to rebuild relations and are ready to invest billions of dollars in this great potential,” he mentioned.
He highlighted Libya’s offshore power sector as a promising space for exploration and improvement, describing current fields and brownfields as holding immense alternatives.
“We believe in offshore potential. Current fields and brownfields have great opportunities for investment. We are ready to invest in this potential,” he famous.
Türkoğlu additionally mentioned TPAO is ready to safe contracts for each new exploration blocks and current ones to boost their efficiency and effectivity.
Transparency in Libya’s power market
Türkoğlu emphasised the significance of competitors and transparency in Libya’s power market to draw international funding.
“We need to create a win-win environment where both Libya and investors can thrive,” he mentioned, stressing the necessity for improved sustainability, predictability, and monetary compliance.
He identified challenges confronted by international buyers in Libya, calling for easy, aggressive, and clear market entry to permit for broader participation and contribution to Libya’s financial progress.
Despite obstacles, Türkoğlu expressed optimism about Libya’s power future, supplied a balanced surroundings benefiting each the nation and its buyers is established.
Source: www.dailysabah.com