Lots in the news recently regarding Libya’s agreement to release the foreign medical workers held in the HIV/AIDs scandal, ostensibly partially in return for greater interaction with the EU. While Libya has slowly been working to improve its image and relationships over the past few years, the reality of its petroleum potential & wealth is undisputed. With proven natural gas reserves of slightly more than 53 trillion cubic feet (tcf) and current oil production capacity at 1.6 million barrels per day, Libya is hoping to garner the foreign investment needed to drive up both of these metrics.

But, while the size of Libya’s reserves is significant, its location close to Europe is even more important. Italy, in particular, stands to gain significantly as a transit point for supplies going to the rest of Europe, possibly as a liquefied natural gas hub. It will likely pay to keep an eye on exploration, refining, chemical, and even the tourism sectors in the months/years ahead, as more and more companies and individuals get over the stigma of working/travelling in Libya. That is, of course, not to diminish the challenges offered by an active terrorism threat and underfunded & deteriorating infrastructure, but still the potential for long-term change to an investment haven is intriguing.