AGP Executive Report

Maritime Trade: The first passenger ferry in decades sailed from Benghazi’s Jaliyana Free Zone to Turkey, aiming to cut pressure on other transport modes and boost tourism and investment. Central Banking & FX: Libya’s CBL reports a LD 30.3bn revenue surplus (Jan-Aug 2026) but a US$ 4.9bn foreign exchange deficit, highlighting the hard-currency squeeze. Energy & Industry: NOC says Mellitah’s KK Station gas recovery trial has started, recovering 15 million cubic feet/day of associated gas to support the grid and push “zero gas flaring” by 2030. Oil & Gas Projects: Mellitah also reopened Al-Rimal well R-3, while NOC welcomed the broader gas utilization push. Infrastructure & Investment: Libya’s National Development Agency signed an MoU with France’s Bureau Veritas to raise quality, safety and compliance standards on strategic projects. Manufacturing in Benghazi: A low-carbon steel project tied to the Tosyali-Sulb Turkish-Libyan plan targets $2.5bn investment and 2028 commercial production, with most output exported. Trade Compliance: Libya’s Economy Ministry moves to enforce a ban on imports outside banking channels, coordinating with customs to standardize procedures. Border Costs: A Libyan-Egyptian chamber warns of a US$150 per-truck “inspection certificate” fee collected outside Libya, causing backlog and potential cost shifting to citizens. Governance: HoR Speaker Ageela Saleh convenes an official session in Benghazi next Monday after more than eight months.

Libya–France Investment Push: Libya’s National Development Agency signed an MoU with France’s Bureau Veritas on the sidelines of the Libyan-French Economic Summit in Sirte, aiming to boost quality assurance, inspection, technical verification and international standards across NDA projects. Central Bank Watch: Libya’s CBL reported a Jan–Aug 2026 dinar surplus of LD 30.3bn, but flagged a hard-currency gap: a US$ 4.9bn foreign exchange deficit as oil revenues and royalties reached only US$ 15.2bn. Energy & Industry: NOC welcomed Mellitah Oil & Gas’s KK Station gas recovery trial operations, recovering associated gas of 15 million cubic feet per day via a 40-km pipeline to Abu Attifel, supporting grid supply and pushing “zero gas flaring” goals. Trade Controls: Libya’s Economy and Customs moved to enforce a ban on imports outside regulated banking channels, coordinating with customs entry points after years of off-system trade. Politics & Elections: HoR Speaker Ageela Saleh convened an official session in Benghazi for 14 September and Libya’s 6+6 election committee was set to be reactivated in Türkiye. Cross-Border Friction: A Libyan-Egyptian chamber warned of truck backlogs at Musaid after a $150 per-truck “inspection certificate” fee collected outside Libya’s treasury.

Libya’s Political Roadmap: The UN Security Council welcomed Libya’s 4+4 “Smaller Convening” election deal as an “important step,” urging parties to unify military, security and executive institutions and reconstitute the High National Elections Commission. Libya’s Security & Oil Risks: Despite the political progress, analysts warn persistent drone strikes on hydrocarbon facilities are disrupting supply and raising costs for the oil sector. Libya’s Institution-Building: US senior adviser Masad Boulos said Washington backs efforts to merge political, economic, military and security institutions under a single executive authority, aligned with UNSMIL and the UN-led election path. Regional Energy Diplomacy: Egypt, Cyprus and Greece reiterated that maritime-jurisdiction agreements involving Libya must follow international law under UNCLOS, while calling for faster gas links and the withdrawal of foreign forces and mercenaries from Libya. Algeria–UAE Break: Algeria cut diplomatic ties with the UAE and closed its airspace to Emirati aircraft, a move that could ripple across regional logistics and business travel. Oil Market Signals (Africa): Nigeria’s crude output rose to 1.573m bpd in August as OPEC production increased, while Dangote’s refinery reportedly bought at least 16m barrels of Nigerian crude for October to ramp up processing.

Libya’s Election Roadmap: The UN Security Council welcomed Libya’s Aug. 30 election deal as an “important step” toward national polls, urging parties to implement the 4+4 committee agreement and unify military, security and executive institutions. Oil & Security Risk: Despite the political progress, drone strikes on hydrocarbon facilities and supply disruptions are still worrying the oil sector, raising fears that instability could derail economic recovery. Unified Economic Number Rollout: Libya’s National Council for the Unified Economic Number approved pilot operations for electronic issuance, linking owners’ national numbers to registered phone numbers via the “Dawlati” platform to improve the business registry. Benghazi Trade Boost: The Libyan Business Council’s Eastern Branch hosted a French Business France delegation in Benghazi, discussing partnerships in energy, infrastructure, engineering and sustainable development. NOC Drilling Tech Talks: Libya’s National Oil Corporation held a workshop with EGYDRILL Free Zone and Norwegian partners to review modern drilling and workover technologies for wider adoption. AGOCO Contractor Reassignments: AGOCO reassigned drilling, well maintenance and software-related contracts to Baker Hughes after earlier service providers failed to meet obligations, aiming to raise operational efficiency. Renewables for Industry: Penta Energy Services signed a 25MW solar PPA to supply part of LISCO’s electricity needs in Misrata, supporting Libya’s renewable energy strategy. Water Infrastructure Review: Libya’s Development and Reconstruction Fund committee inspected Wadi Al-Qattara dam facilities with French firm Artelia to assess flood risks and readiness. Medical Liability Insurance: Libya’s Medical Insurance Authority stressed malpractice insurance to protect patients and doctors, clarifying that coverage links to proven professional errors and breaches of standards.

Unified Economic Number Rollout: Libya’s National Council for the Unified Economic Number has approved pilot operations for electronic issuance, starting with linking business owners’ National Numbers to registered phone numbers via the “Dawlati” platform—aimed at tightening identity verification and upgrading the economic activity database. Oil Sector Contract Rework: AGOCO says it has reassigned drilling, well maintenance and related software tasks to Baker Hughes after removing underperforming providers, with workshops planned to restart work and boost technical performance. Solar for LISCO: Penta Energy Services signed a 25MW solar Power Purchase Agreement to supply part of the electricity needs of Libya Iron and Steel Company (LISCO) in Misrata, under the national renewable energy and efficiency strategy. NOC/SLB Partnership Signal: SLB reaffirmed it will not scale back in Libya and wants to expand investment and infrastructure to support NOC plans to raise production, while NOC-linked reporting highlights ongoing sector momentum. Libya–China Economic Cooperation: Libya and China discussed expanding cooperation in reconstruction, water resources and AI, aiming to turn talks into practical projects across political, economic and development tracks. Regional Context Watch: Turkey’s engagement with eastern commander Khalifa Haftar signals a shift toward “One Libya” diplomacy, while UN-backed election rules move forward—both shaping the business climate Libya investors care about.

Libya’s Oil Sector Signal: Schlumberger (SLB) says it will not scale back in Libya and plans to expand investment and infrastructure to back NOC output goals, while also stressing NOC’s commitment to settle partner debts. NOC Investment Race: Libya’s oil push faces a financing and security squeeze as the NOC weighs bigger investor-funded development to reach a 2 million bpd target by 2031, with new field and budget momentum reported. Energy Security & Politics: Libya’s rival blocs have agreed under UN facilitation on new election rules and a vote within two years, with the UN Security Council urging fast implementation as trust remains fragile. Libya–China Dealmaking: Libya and China discussed widening economic and investment cooperation across reconstruction, water resources and AI, aiming to turn talks into practical projects. Financial Returns Watch: Libya’s Long-Term Investment Portfolio reported about US$1.25bn profits in 2025 and is awaiting UN approval to deploy funds held at HSBC and Euroclear for potentially higher 2027 gains. Bread Market Moves: Libya set a flour price ceiling to stabilize the bread market, alongside MoU work to support the bread industry. Regional Trade Context: Bahrain posted the highest Arab trade surplus in 2025, with Libya also ranking among the surplus economies—useful backdrop for Libya’s own trade and FX pressures. Maritime Security Link: Morocco joined the multinational “Phoenix Express-2026” exercise in Tunisia, aimed at protecting southern Mediterranean trade routes—relevant for regional commerce stability.

Bread & Flour Market Control: Libya’s Industry Union says eight mills will sell flour to bakeries at a capped 280 dinars per qintar (100kg), aiming to stabilize bread prices and protect supply. Fuel & FX Pressure: A Central Bank official said the dinar’s widening black-market gap persists because of a “black hole” for dollars and weak financial data, limiting how much interventions can work. Energy Security Moves: Libya is exploring switching power plants from liquid fuel to LNG to cut generation costs and reduce fuel dependence, while Prime Minister Aldabaiba reviewed final works on Tripoli International Airport and Airport Road. Oil Infrastructure Under Attack: Libya’s unity government dismantled a sabotage cell behind drone attacks on vital oil and power facilities, and authorities reported arrests tied to drone strikes on oil complexes. Food Security Through Trade: Port data shows Julyana Free Zone handled a big jump in grain imports in H1 2026, underscoring how Libya’s bread depends on global shipping and port reliability. Regional Diplomacy: Egypt, Cyprus and Greece reiterated cooperation on energy and security and backed UN-led steps affecting Libya alongside Gaza and Lebanon. Business & Finance: North Africa’s startup funding lagged the Gulf in August, with Libya among countries showing no recorded deals in available regional data. Travel Risk Signal: The US kept Libya at Level 4 “Do Not Travel,” citing security threats including clashes, crime, and smuggling networks.

Bread Market Watch: Libya’s Flour Industry Union says it has agreed with the Economy Ministry, the Central Bank and flour mills to cap flour at 280 dinars per qintar (100kg) for bakeries, with eight mills already applying the price to stabilize bread supplies. Fuel & Power Costs: Libya’s Industry Ministry is exploring switching power plants from liquid fuel to LNG to cut generation costs and reduce reliance on costly fuel imports. FX Reality Check: A Central Bank Monetary Policy Committee member says the dinar’s black-market gap persists because Libya faces a “black hole” for dollars, weak financial data, and gaps in unified spending plans. Oil Operations: Mellitah Oil & Gas has restarted the Al-Rimal R-3 well after maintenance, lifting output to about 3,026 bpd. Security & Infrastructure: Libya’s authorities report arrests tied to drone attacks on oil and electricity facilities, including a dismantled sabotage cell. Trade & Payments: North Africa Bank plans direct mobile payments to China via Alipay, aiming to boost cross-border transactions. Aviation Projects: Prime Minister Aldabaiba reviewed progress on Tripoli International Airport and Airport Road works, stressing quality and international specs.

Libya Food Security & Trade: Julyana Free Port handled 587,645 tonnes of grain in H1 2026 (up 83% year-on-year), underscoring how Libya’s bread and livestock supply still hinges on imports as domestic output is expected to drop. Bread Industry Stabilisation: Libya’s Industry and Minerals ministry signed an MoU to implement the National Initiative to Stabilize and Support the Bread Industry, aiming to regulate about 1,876 bakeries, link flour quotas to real production, and tighten monitoring so subsidies reach intended beneficiaries. Energy Infrastructure Under Pressure: Libya’s unity government says it dismantled a suspected sabotage cell behind suicide drone attacks on oil and electricity facilities in Tripoli and Zawiya, arresting five Libyans and foreigners and claiming several planned attacks were also foiled. Regional Security & Energy Links: Greece, Cyprus and Egypt held a trilateral summit in El Alamein focused on regional stability, with energy and defense cooperation high on the agenda as tensions around the Eastern Mediterranean continue to spill over. US Middle East Posture: US officials are reportedly weighing a permanent reduction in military and intelligence presence in West Asia after the Iran conflict, a potential shift that could affect regional business and logistics planning.

Libya–Tunisia Energy: Libya and Tunisia opened a new bid round for their joint offshore area, including development of the Zarat discovery, with bids due by Dec 31, 2026—a clear push for cross-border oil and gas cooperation. Energy Security: Libya’s Government of National Unity says it dismantled a sabotage cell behind drone attacks on oil and electricity facilities in Tripoli and Zawiya, arresting five Libyans and foreigners and foiling planned strikes on a power station south of Tripoli. Fuel Crisis Update: Libya’s Interior Ministry reports improving fuel distribution, with shorter queues and tighter security at service stations as authorities continue monitoring supplies and cracking down on smuggling. Central Banking & Payments: The Central Bank of Libya launched initiatives at the 5th Arab Conference on Savings and Financial Literacy, including work on Arab payments via “Buna,” steps toward linking with China’s CIPS system, and a digital currency study track. Aviation & Trade Links: Private Libyan carrier Medsky is progressing toward direct flights between Tripoli and Sarajevo, aiming to boost travel, trade, and tourism. Regional Diplomacy: Tunisia chaired the Arab League Council session in Cairo, stressing Arab solidarity and calling for action to protect occupied Jerusalem and holy sites.

Oil & Power Security: Libya’s Government of National Unity says it has dismantled an organized “sabotage cell” behind drone attacks on Tripoli and the Zawiya oil complex, arresting five suspects including foreign nationals and linking the plot to planned strikes on power infrastructure. Energy Shock Risk: A new analysis warns African economies are highly exposed to energy shocks like the Strait of Hormuz crisis, arguing Libya-style disruptions can’t be treated as one-off emergencies. Fuel Distribution Under Pressure: NOC says a drone strike on Brega Petroleum Marketing’s Airport Road fuel depot caused minor shrapnel damage to tanks and pipelines but did not interrupt fuel distribution, with teams emptying tanks as a precaution. Business & Investment: The second Libyan-American Development and Reconstruction Forum opened in Benghazi, pitching partnerships for U.S. companies to move from proposals to projects. Trade & Shipping: Julyana Free Zone Port reported 93 commercial vessel arrivals in August, signaling growing import and trade activity. Health Workforce: Libya’s Health Ministry denies plans for broad foreign recruitment, saying any overseas hiring would be temporary, after protests by the Health Sector Movement Union.

Energy Security: Libya’s Government of National Unity says it dismantled an organized “sabotage cell” behind explosive-laden drone attacks on oil and electricity facilities in Tripoli and Zawiya, arresting five suspects (including foreigners) and warning of other plots targeting power assets and key figures. Fuel Supply Watch: Separately, NOC says a drone strike hit Brega Petroleum Marketing’s Tripoli fuel depot, damaging tanks and pipelines but not disrupting distribution; Brega also claims congestion is easing as depot deliveries and tanker offloading continue. Trade & Ports: Julyana Free Zone Port reported 93 commercial vessels calling in August, including container ships, fuel tankers and bulk carriers—signaling rising import and trading activity. Investment & Diplomacy: The second Libyan-American Development and Reconstruction Forum opened in Benghazi, focusing on turning partnership talks into projects with U.S. companies. Health Sector: Libya’s Health Ministry denies plans for broad foreign medical recruitment, saying any overseas hiring would be temporary—after protests over alleged Syrian recruitment and pay disputes. Regional Business Links: Spanish business groups plan B2B meetings in Tripoli (6–9 Sept) to deepen trade ties.

Libya–US Business: The second Libyan-American Development and Reconstruction Forum opened in Benghazi, with the Libyan Development and Reconstruction Fund pushing for real projects and partnerships between American firms and local companies. Energy & Security: Harouge Oil Operations brought replacement well B79A online at the Amal field, targeting higher 2026 output, while separate drone-related damage at Brega’s Tripoli fuel depot (tanks 213 and 220) was reported as not disrupting fuel distribution. Fuel Market Watch: Brega Petroleum Marketing says congestion is easing as tankers and depot offloading increase across Misrata, Tobruk and Zawiya, though some queues persist. Health Workforce: Libya’s Health Ministry denies plans for large-scale foreign medical recruitment, responding to claims of Syrian hiring and highlighting a preference for temporary measures only. Trade & Investment: Spain’s Tarragona Chamber of Commerce is sending a multisector business mission to Tripoli (6–9 Sept) to set up B2B meetings and new commercial links. Travel Advisory: The US renewed its Level 4 “Do Not Travel” warning for Libya, citing terrorism, crime, landmines, unrest and kidnapping risks.

Fuel Security in Libya: The National Oil Corporation says a drone attack hit Brega Petroleum Marketing’s Tripoli fuel depot on Airport Road, damaging tanks 213 and 220 and two pipeline lines with shrapnel, but fuel distribution was not interrupted and no casualties were reported; NOC says teams began emptying tanks to reduce fire risk and is urging tighter protection of oil infrastructure. Fuel Crisis Update: Brega Petroleum Marketing also claims congestion at stations is easing, citing higher daily supply rates and steady tanker offloading via Misrata, Tobruk and Zawiya depots—while some queues and public questions about missing volumes remain. Health Workforce Policy: Libya’s Health Sector Movement Union says the Tripoli government contracted a recruitment company to bring about 200 medical and paramedical staff from Syria, with salaries set in USD, while the union warns this could marginalize Libyan cadres and accelerate talent migration. Finance & Inclusion: The Central Bank of Libya will host the 5th Arab Conference on Savings and Financial Literacy in Tripoli (Sept 7–9), focusing on financial literacy, saving, investment, inclusion and digital services. Regional Diplomacy: The Arab League Council’s 166th session opened in Cairo under Tunisia’s chairmanship, with Libya on the agenda alongside regional security and economic items.

Libya–Korea Economic Push: Libya and South Korea are preparing a 2026 Economic Cooperation Forum in Tripoli on 28 September, with Tripoli’s foreign ministry coordinating logistics and bilateral meetings with Korean institutions and companies. Power & Grid Stability: GECOL says the Third Unit at Zawia Combined-Cycle Power Plant has been reconnected to Libya’s national grid after an overhaul, restoring 150 MW capacity following drone and militia-related disruptions. Finance & Digital Banking: Libya’s Central Bank will host the 5th Arab Conference on Savings and Financial Literacy in Tripoli (7–9 September), focusing on financial inclusion and digital financial services. Fuel Crisis Pressure: Interior Ministry action closed 490 petrol stations tied to fuel smuggling, while reports also point to ongoing fuel crisis strain and related enforcement. Regional Context—Sudan War Spillover: A UN probe says foreign networks are supplying weapons, drones and contractors fueling Sudan’s civil war, with Libya mentioned among countries linked to the wider operational networks. Migration & EU Policy Watch: EU states are moving toward “return hubs” outside the bloc, with Rwanda discussed as a possible partner—an issue that can affect regional migration flows into North Africa.

Libya–Korea Economic Push: Libya and South Korea are preparing for a 2026 Economic Cooperation Forum in Tripoli, with Libyan officials confirming arrangements for bilateral meetings with Korean institutions and companies. Egypt–Italy Trade & Energy: Egypt and Italy discussed expanding trade, investment, energy links and labour mobility, including work on an electricity interconnection aimed at strengthening ties with Europe. Libya Power Reliability: Zawia’s Third Unit has been reconnected to Libya’s national grid after an overhaul, adding 150MW, though earlier drone and militia clashes delayed commissioning. Tripoli Fuel Depot Hit: A drone attack on NOC-linked fuel depot infrastructure in Tripoli caused minor damage and prompted precautionary fuel tank drawdowns, with supplies reportedly unaffected. Libya Finance & Skills: The Central Bank of Libya will host the Arab Conference on Savings and Financial Literacy in Tripoli (Sept 7–9), focusing on inclusion, digital services and practical saving and investment know-how. Regional Shockwaves: A UN probe says foreign networks and drones are fueling Sudan’s war, while separate reporting highlights Turkey-linked jihadist deployment routes that have included Libya.