How U.S. Firms Can Drive Water Management Solutions for Libya’s Mature Oil Fields
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As Libya works to boost oil output and extend the life of its mature fields, managing produced water has become a central technical and operational priority. With major volumes of water often accompanying oil production – particularly in aging reservoirs – advanced water handling and enhanced oil recovery technologies are key to maintaining efficiency and minimizing environmental impact. Ahead of the upcoming U.S.-Africa Energy Forum (USAEF) in Houston, Libya is signaling strong interest in partnering with U.S. companies that offer proven solutions in this space, especially those with experience in the region but not yet present in the Libyan market.
In several Libyan oil fields, high water cuts – sometimes reaching up to 80% – have presented both operational and environmental challenges. These conditions are especially common in mature basins, where infrastructure is aging and operating beyond its original design parameters, thereby creating substantial opportunity for innovation and investment. The need extends beyond standard water separation systems to include advanced subsurface diagnostics, zonal isolation techniques and mobile or modular water treatment units suitable for remote desert environments. U.S. service companies that can deliver these technologies with cost-efficiency and a nuanced understanding of local geology are well-positioned to capture early-mover advantage in this underdeveloped segment of the market.
A recent example of this potential is evident at the Abu-Attifel field, operated by Mellitah Oil & Gas, where well A71 faced a 63% water cut that significantly reduced oil output. However, after implementing targeted well stimulation and re-perforation interventions, Mellitah successfully reduced the water cut to 28.5% – and oil production increased fourfold as of April 2024. This turnaround illustrates how focused investment and technical expertise can deliver transformative results. It also signals broader opportunity across Libya’s upstream sector for companies equipped with innovative solutions.
USAEF 2025 provides a timely platform to explore these opportunities, facilitating targeted discussions around technical cooperation, upstream optimization and private sector engagement. As part of the program, an “Invest in Libya” roundtable followed by private B2B and B2G meetings will offer U.S. firms direct access to decision-makers from the Libyan government and key local stakeholders – creating a unique entry point for building relationships and identifying viable project opportunities. Libya’s message to American companies is clear: the country is open for business and ready to work with niche players that can help solve long-standing technical bottlenecks.
For U.S. firms looking to enter new markets or expand their MENA footprint, Libya offers a high-reward proposition. The country’s strategic location, significant reserves and clear appetite for operational improvement make it a natural extension for companies already active in the region. For those who can offer solutions to the country’s water cut problem, the potential for long-term, high-impact partnerships is strong.
While Libya’s upstream recovery is still underway, its commitment to improving field performance and attracting specialized expertise signals a new phase of international cooperation. For U.S. companies with the tools to manage water – and the vision to see opportunity in complexity – Libya may be one of the most promising frontiers in MENA oil and gas today.
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