The Economy of Libya depends primarily upon revenues from the petroleum sector, which contributes practically all export earnings and over half of GDP. These oil revenues and a small population have given Libya the highest nominal per capita GDP in Africa.
Libya is an OPEC member and holds the largest proven oil reserves in Africa. About 80% of Libya’s proven oil reserves are located in the Sirte Basin, which is responsible for 90% of the country’s oil output. The state-owned National Oil Corporation (NOC) dominates Libya’s oil industry, along with smaller subsidiaries, which combined account for around 50% of the country’s oil output.
The NOC hopes to raise oil production from 1.80 million bpd in 2006 to 2 million bpd by 2008. FDI into the oil sector is likely, which is attractive due to its low cost of oil recovery, high oil quality, and proximity to European markets.