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ANALYSIS - What does the Libya-Türkiye hydrocarbons deal mean?

- With hydrocarbons deal earlier this month, Türkiye and Libya move to boost cooperation on land and sea fields of North African nation

home > Natural Gas, Oil, Türkiye, Middle East-Africa 20.10.2022 10:17

ANALYSIS - What does the Libya-Türkiye hydrocarbons deal mean?

Top Turkish officials on a surprise one-day visit to Libya's capital Tripoli earlier this month signed major documents to boost cooperation between the two countries, particularly on hydrocarbons.

The two countries committed to developing bilateral scientific, technical, technological, legal, administrative, and commercial cooperation on land and sea in the field of hydrocarbons with the memorandum of understanding, signed on Oct. 3.

Steps were also taken to strengthen collaboration in the fields of energy, defense, trade, and communications during the visit by Foreign Minister Mevlut Cavusoglu, Energy and Natural Resources Minister Fatih Donmez, National Defense Minister Hulusi Akar, Trade Minister Mehmet Mus, Communications Director Fahrettin Altun, and presidential spokesman Ibrahim Kalin.


- Implementation phase begins

These agreements came after a previous memorandum of understanding in November 2019 that marked the maritime boundaries between Türkiye and Libya in the Mediterranean Sea, while also setting the stage for increased security and military cooperation.

With the latest deals, the measures in these memorandums have now entered the phase of implementation.

Speaking later, Cavusoglu said the agreement on hydrocarbons was aimed towards cooperation between Turkish and Libyan companies including in the areas of exploration and drilling, "with a win-win understanding both on land and at sea and in our jurisdictions."

Abdul Hamid Dbeibeh, leader of the Tripoli-based unity government said that according to the maritime agreement signed with Ankara, oil exploration work would be carried out.

It can now be concluded that Libya and Türkiye have jointly entered the exploration and drilling phase of their agreements, both at sea and on the land. Türkiye is expected to launch seismic survey activities in Libya's exclusive economic zone soon.

Ankara's discoveries in both the Mediterranean and Black Seas with its powerful energy fleet of four drilling vessels and two seismic research vessels served as an important reference point for this deal.


- Critical timing amid global energy crisis

With the current energy crisis across the globe, the hydrocarbon fields in the Eastern Mediterranean are once again situated at the center of a power struggle.

The safe transfer of potential hydrocarbon resources in the Mediterranean to Europe has been a critical matter to Israel, Greece, and the Greek Cypriot administration for a long time now. In fact, the EastMed Pipeline project, which excluded Türkiye, was proposed for exactly this transfer, though the project collapsed after the US withdrew its support.

On the other hand, gas leaks in the Nord Stream 1 and Nord Stream 2 pipelines, which were built to transport natural gas from Russia to Europe, have raised the issue of the safety of natural gas transported from Libya to Europe via the Green Stream line, spanning 510 kilometers (317 miles). According to Italian news reports, that country's Navy will start working to protect this gas line with mine-searching ships, frigates, and maritime patrol aircraft.

The reason behind Italy's concern is the presence of the Russia-backed paramilitary group Wagner in Libya and the possibility of sabotage of the gas flowing to Italy from the North African coast.

According to reports, Wagner does not control the areas where Libya's Mediterranean natural gas platforms are located. This gas is exported to Italy and is extracted from areas close to the majority of onshore Libyan fields.

However, Wagner can stop production at onshore fields and ensure that gas extracted from the Mediterranean is used in the domestic market, instead. This could cut off the energy flow from Libya to Europe.

On the other hand, Türkiye's exploration and drilling activities in Libya's exclusive economic zone may cause crises between Türkiye and Italy in the coming period.


- Regional effects

By signing the 2019 deal on maritime boundaries, Libya showed that it was not giving up its rights in the south of Crete. Greece and Egypt responded to this move by signing an agreement of their own on the "limitation of maritime jurisdiction" in 2020.

Türkiye's latest treaties with Libya received criticism from both Greece and Egypt, with Greek Foreign Minister Nikos Dendias visiting Cairo just six days later for a meeting with his Egyptian counterpart and asserting that they were "ready to respond to any provocation" from Türkiye.

Greece's opposition to the agreements stems from three main issues. Greece, which is already raising tensions against Türkiye in the Aegean and Eastern Mediterranean, does not want Ankara to operate in the south via an agreement with Libya.

Another inconvenience for Athens is that Libya is acquiring its rights to Crete's south through its agreement with Türkiye in the international sense. It should be noted that by signing the two deals with Türkiye, Libya added 16,700 square kilometers (about 6,450 sq mi) to the area of its maritime control in the south of Crete compared to the terms in its agreement with Greece.

Referring to this matter, Prime Minister Abdul Hamid Dbeibeh said: "We will not give up our right to the territorial waters in the south of Crete. The signed protocol will strengthen our major oil wealth and related investments in our regional waters."

This situation also shows that there is a win-win situation, refuting claims by various actors that the consensus only focuses on Türkiye's interests.
Geopolitically, Greece does not want the Türkiye-Libya maritime border to cut off its access to the Eastern Mediterranean and does not want Ankara's agreement with Tripoli to set a precedent for other countries.

On the other hand, how Greece will react if Türkiye starts exploring for hydrocarbons in Libya's economic field will be a major issue in the coming period. Ankara is expected to protect the drilling and exploration ships that it will send to the region with the frigates currently off the coast of Libya.

Egypt, another country that met the agreement negatively, harbors concerns about Türkiye's strengthening economic and political position in Libya, especially in the east of the country, while its influence in Libya flags.


- Türkiye in contact with all Libyan parties

With the agreement, Türkiye has sent a solid message to international actors on its position in Libya.

International actors, especially the US and EU, have been taking a passive and risk-free approach to instability in Libya for a long time. With the world's eyes focused on the Russia-Ukraine war, Türkiye's move has strengthened its footing in the Eastern Mediterranean and Libya, while building confidence in the Libyan actors.

Today, as energy security is as vital as energy itself, Türkiye's move towards becoming a "safe" central country in energy is a measure of how close it is to its goal.

Speaking after the agreement, Foreign Minister Cavusoglu said: "We are also meeting with all parties in Libya. All the Libyan groups with whom we have differed in the past strongly support this agreement."

A visit in August by Aguila Saleh, the Tobruk-based speaker of the Libyan House of Representatives, to Türkiye for a meeting with President Recep Tayyip Erdogan, as well as his previous contacts with Türkiye's Ambassador to Tripoli, Kenan Yilmaz, in Benghazi can be considered as evidence of these words.

The House of Representatives had elected Fathi Bashagha as the country's prime minister at a sitting when most of the deputies from the west of the country were absent on Feb. 10.

They did so on the grounds that the current National Unity Government's mandate expired on Dec. 24 last year, giving a vote of confidence to Bashagha's government weeks later, with him later unsuccessfully attempting to overthrow the Tripoli government by military and political means.

By signing this agreement, the Turkish government has thus demonstrated that it will continue to support Tripoli.

By Talha Yasir Akar

Anadolu Agency

energy@aa.com.tr


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Global wholesale gas prices average $4.88 per MMBtu in 2024

- Global average gas prices fall by nearly 50% from 2022 levels, with gas-on-gas pricing mechanisms covering almost half of total consumption in 2024
27.06.2025 Natural Gas , Finance , General

Israel warns of imminent cooking gas shortage after Iranian missile attack on Bazan refinery

-It will take about month for Bazan refinery to fully resume operations, says Israeli energy minister
27.06.2025 Natural Gas

Spot market natural gas prices for Tuesday, June 24

- 1,000 cubic meters of natural gas on spot market costs 13,590.88 Turkish liras
25.06.2025 Natural Gas

Oil, gas prices retreat to below pre-conflict levels after Israel-Iran ceasefire

- Brent crude and European gas prices surged since Israel's June 13 attack on Iran, but fell Tuesday after ceasefire announcement
26.06.2025 Natural Gas , Oil

Vessel traffic in Strait of Hormuz continues

- No significant decline in ship traffic except for 6 vessels making U-turns to avoid waterway amid Israel–Iran conflict
25.06.2025 Natural Gas , Oil

European gas prices fall after Trump announces Israel-Iran ceasefire

- Market tensions ease as fears of disruption to global LNG trade through Strait of Hormuz subside
25.06.2025 Natural Gas

Spot market natural gas prices for Sunday, June 22

- 1,000 cubic meters of natural gas on spot market costs 13,620.08 Turkish liras
23.06.2025 Natural Gas

Spot market natural gas prices for Saturday, June 21

- 1,000 cubic meters of natural gas on spot market costs 13,623.21 Turkish liras
22.06.2025 Natural Gas

Spot market natural gas prices for Friday, June 20

- 1,000 cubic meters of natural gas on spot market costs 13,669.59 Turkish liras
21.06.2025 Natural Gas

Spot market natural gas prices for Thursday, June 19

- 1,000 cubic meters of natural gas on spot market costs 13,683.56 Turkish liras
20.06.2025 Natural Gas

Spot market natural gas prices for Wednesday, June 18

- 1,000 cubic meters of natural gas on spot market costs 13,735.42 Turkish liras
19.06.2025 Natural Gas

Europe's gas consumption drops to 30-year low, says Gazprom

- Europe's gas consumption shows sharp decline as demand grows rapidly in Asia, Gazprom official says
19.06.2025 Natural Gas

Spot market natural gas prices for Tuesday, June 17

- 1,000 cubic meters of natural gas on spot market costs 13,730.22 Turkish liras
18.06.2025 Natural Gas

EU proposes banning LNG gas imports from Russia by end of 2027

- 'This will help the EU become more energy independent, improve the security of the energy supply, and boost the Union's energy independence and competitiveness,' says EU Commission
17.06.2025 Natural Gas

Spot market natural gas prices for Monday, June 16

- 1,000 cubic meters of natural gas on spot market costs 13,692.57 Turkish liras
18.06.2025 Natural Gas

Türkiye sees no disruption in gas supplies from Iran: Energy minister

- Türkiye faces no disruption in its gas supply from Iran despite regional tensions, but rising oil prices could impact gas prices and increase country's energy import bill, says Alparslan Bayraktar
19.06.2025 Natural Gas

EU gas demand on track to drop 7% in 2030 compared to 2023: Ember

- EU countries are set to reduce their total gas demand from 326 billion cubic meters (bcm) to 302 bcm, according to a new Ember report
18.06.2025 Natural Gas

Türkiye's Oruc Reis vessel begins return journey after first intercontinental mission off Somalia

- Seismic vessel departs from Port of Mogadishu, expected to reach Türkiye in early July
17.06.2025 Natural Gas

Spot market natural gas prices for Sunday, June 15

- 1,000 cubic meters of natural gas on spot market costs 13,824.02 Turkish liras
16.06.2025 Natural Gas

Spot market natural gas prices for Saturday, June 14

- 1,000 cubic meters of natural gas on spot market costs 13,632.43 Turkish liras
15.06.2025 Natural Gas

Spot market natural gas prices for Friday, June 13

- 1,000 cubic meters of natural gas on spot market costs 13,686.85 Turkish liras
14.06.2025 Natural Gas

Spot market natural gas prices for Thursday, June 12

- 1,000 cubic meters of natural gas on spot market costs 13,699.17 Turkish liras
13.06.2025 Natural Gas

European gas prices jump 4% following Israeli attack on Iran

- European gas prices opened 4% higher on Friday following Israel's strike on Iran, with the market posting its largest single-day increase in five weeks
14.06.2025 Natural Gas

Spot market natural gas prices for Wednesday, June 11

- 1,000 cubic meters of natural gas on spot market costs 13,698.52 Turkish liras
12.06.2025 Natural Gas

European energy markets face volatility in 2H25 amid tight LNG supply

- Policy uncertainty fuels volatility in European energy outlook
13.06.2025 Lng/Lpg , General

Spot market natural gas prices for Tuesday, June 10

- 1,000 cubic meters of natural gas on spot market costs 13,714.64 Turkish liras
11.06.2025 Natural Gas

Spot market natural gas prices for Monday, June 9

- 1,000 cubic meters of natural gas on spot market costs 13,715 Turkish liras
11.06.2025 Natural Gas

Spot market natural gas prices for Sunday, June 8

- 1,000 cubic meters of natural gas on spot market costs 13,806 Turkish liras
09.06.2025 Natural Gas

Spot market natural gas prices for Saturday, June 7

- 1,000 cubic meters of natural gas on spot market costs 13,871.34 Turkish liras
08.06.2025 Natural Gas

Spot market natural gas prices for Friday, June 6

- 1,000 cubic meters of natural gas on spot market costs 13,770 Turkish liras
07.06.2025 Natural Gas

Spot market natural gas prices for Thursday, June 5

- 1,000 cubic meters of natural gas on spot market costs 13,799.41 Turkish liras
06.06.2025 Natural Gas

Japan to propose cooperation on rare earth elements in US tariff talks: Report

- Tokyo seeks supply chain deal to ease China-driven shortages and accelerate tariff relief
06.06.2025 Natural Gas

Spot market natural gas prices for Wednesday, June 4

- 1,000 cubic meters of natural gas on spot market costs 13,649.42 Turkish liras
05.06.2025 Natural Gas , General

Spot market natural gas prices for Tuesday, June 3

- 1,000 cubic meters of natural gas on spot market costs 13,797.61 Turkish liras
05.06.2025 Natural Gas

EU gas imports to fall 25% by 2030 as bloc exceeds demand reduction targets

- REPowerEU plan targets 100 bcm gas cut by 2030 through efficiency and renewables
09.06.2025 Natural Gas , Energy Security , General

Spot market natural gas prices for Sunday, June 1

- 1,000 cubic meters of natural gas on spot market costs 13,894.29 Turkish liras
02.06.2025 Natural Gas

Türkiye, Azerbaijan to sign new deal to boost oil, gas production in Azerbaijan

- Shafag-Asiman Production Sharing Agreement to form another partnership between Turkish Petroleum, SOCAR, and bp, says Alparslan Bayraktar
04.06.2025 Natural Gas , Oil , Energy Diplomacy

Spot market natural gas prices for Saturday, May 31

- 1,000 cubic meters of natural gas on spot market costs 13,597.23 Turkish liras
01.06.2025 Natural Gas , Finance

Spot market natural gas prices for Friday, May 30

- 1,000 cubic meters of natural gas on spot market costs 13,546.92 Turkish liras
01.06.2025 Natural Gas

Gazprom's net profit rose to $8.4B in Q1

- Company's revenue and profit up 1% year-on-year in Q1
02.06.2025 Natural Gas

Türkiye’s first floating gas platform reaches Black Sea port

- Türkiye’s first floating natural gas production platform, Osman Gazi, arrived Saturday, May 31, at Filyos Port in Zonguldak on Türkiye’s Black Sea coast
03.06.2025 Natural Gas

Spot market natural gas prices for Thursday, May 29

- 1,000 cubic meters of natural gas on spot market costs 13,717.86 Turkish liras
30.05.2025 Natural Gas

Türkiye's natural gas imports up 35.9% in March

- Russia, US, and Azerbaijan are Türkiye's largest gas suppliers, providing 1.79 bcm, 1.49 bcm, and 1.04 bcm, respectively
30.05.2025 Natural Gas

Spot market natural gas prices for Wednesday, May 28

- 1,000 cubic meters of natural gas on spot market costs 13,579.54 Turkish liras
29.05.2025 Natural Gas

Spot market natural gas prices for Tuesday, May 27

- 1,000 cubic meters of natural gas on spot market costs 13,420.83 Turkish liras
28.05.2025 Natural Gas

Spot market natural gas prices for Monday, May 26

- 1,000 cubic meters of natural gas on spot market costs 13,432.95 Turkish liras
28.05.2025 Natural Gas

Spot market natural gas prices for Sunday, May 25

- 1,000 cubic meters of natural gas on spot market costs 13,301.23 Turkish liras
26.05.2025 Natural Gas

Spot market natural gas prices for Saturday, May 24

- 1,000 cubic meters of natural gas on spot market costs 13,360.75 Turkish liras
26.05.2025 Natural Gas

Spot market natural gas prices for Friday, May 23

- 1,000 cubic meters of natural gas on spot market costs 13,489.27 Turkish liras
24.05.2025 Natural Gas
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