Libya has opened a new channel for crude oil supplies to Pakistan. On October 12, 2026, Libya’s Oil and Gas Minister, Khalifa Rajab Abdulsadek, told Pakistan’s Petroleum Minister, Ali Pervaiz Malik, that he would encourage Libya’s National Oil Company to allocate larger volumes of crude to Pakistani buyers. The two ministers agreed to deepen bilateral energy cooperation during a meeting on the sidelines of the 17th International Energy Forum (IEF) ministerial meeting in Riyadh.
For Pakistan, this is about one thing: not depending on a single route for the oil that keeps its economy running. But it is worth understanding exactly what happened — and what did not.
Key Takeaways
- Libya agreed at a Riyadh energy meeting on Oct 12, 2026 to steer more crude oil toward Pakistani buyers through its National Oil Company.
- Pakistan is pushing its refineries to explore Libyan crude to reduce dependence on Middle Eastern shipments passing through the Strait of Hormuz.
- No binding supply deal, volumes, prices or delivery dates were announced — this is an opening, not a finished agreement.
What Actually Happened in Riyadh
The meeting took place in Riyadh on Monday, October 12, 2026, during the IEF ministerial gathering. Pakistan’s Petroleum Division confirmed the discussion publicly, stating the talks covered oil and gas cooperation, including Libyan crude supplies to Pakistan and collaboration on refinery upgradation.
According to reporting by Radio Pakistan and WE News English, the key outcomes were:
- Libya’s offer: Minister Abdulsadek described Pakistan as an important partner and said he would press the Libyan National Oil Company (NOC) to make crude volumes available to Pakistani companies.
- Pakistan’s response: Minister Malik said the government is actively encouraging domestic refineries to explore importing Libyan crude.
- Refinery cooperation: Both sides discussed technical collaboration on modernising refineries. Libya, which is planning upgrades to its own refining facilities, expressed interest in learning from Pakistan’s recent refinery-upgradation experience.
No officials from Libya’s NOC have yet published a public statement about the arrangement, and the specifics will depend on follow-up work between the companies and regulators on both sides.
Why Pakistan Wants Another Supplier
Pakistan imports the vast majority of the crude oil and petroleum products it consumes, with Saudi Arabia and the United Arab Emirates historically serving as its main suppliers. That concentration is exactly the problem Islamabad is trying to fix.
Minister Malik framed the Libya talks as part of a broader strategy to secure alternative supplies in case shipments through critical maritime chokepoints are disrupted — specifically the Strait of Hormuz and the Bab al-Mandeb Strait. Both straits sit at the heart of global oil trade, and any interruption there hits Pakistan directly, because most of its Gulf-origin cargoes pass through them.
This push follows a difficult year for energy markets. Officials describe a 2026 global energy shock that disrupted oil and gas flows and pushed up shipping and insurance costs. Malik told the IEF that Pakistan had managed to avoid major rationing of energy supplies during the crisis, but the experience clearly sharpened the government’s focus on diversification.
The Libya move is not happening in isolation. In August, Reuters reported that Cnergyico — Pakistan’s largest refiner — had expanded imports of American crude to reduce its exposure to Strait of Hormuz shipments, importing roughly 8.1 million barrels worth about $750 million during the financial year ending June 2026. Libyan crude would add another non-Gulf option to the mix, alongside Pakistan’s parallel exploration of Russian and Iranian crude possibilities earlier this year.
What Libya Gets Out of It
The arrangement is not charity. Libya’s oil industry has been rebuilding after years of political instability, ageing infrastructure and production disruptions. According to reports, Libyan production had recovered to around 1.34 million barrels per day by September 2026, and the country is courting new buyers — including Nigeria, Egypt and now Pakistan — to expand its customer base beyond its traditional European importers such as Italy, Germany and Spain.
Pakistan represents a large, growing market: with an estimated 259 million people in 2026, it is the world’s fifth most populous country and a significant fuel consumer. For Libya, opening an Asian sales channel through Pakistani refineries would be a meaningful commercial step, not just a diplomatic gesture.
Libya also stands to gain technical knowledge. Its minister’s interest in Pakistan’s refinery-upgradation experience suggests Tripoli sees the relationship as a two-way exchange — crude in one direction, engineering and modernisation know-how in the other.
What Was Not Announced
This is where readers should stay realistic. For all the positive signals from Riyadh, neither government announced:
- Import volumes — how much crude Pakistan would actually buy
- Pricing or commercial terms — at what price and on what payment conditions
- A delivery schedule — when the first shipments might arrive
- A binding agreement — no formal supply contract has been signed
What exists right now is ministerial-level intent and an official commitment to facilitate flows. Whether Libyan crude actually lands at Pakistani ports will depend on commercial negotiations between buyers and the Libyan NOC, freight costs from North Africa to Pakistan, and whether Libyan crude grades suit the configuration of Pakistan’s refineries. Any of those factors could slow the timeline considerably.
The Bigger Energy Picture
The Riyadh meetings covered more than Libya. Malik held separate discussions with Qatar’s Energy Minister, Saad Sherida Al-Kaabi, on potential liquefied natural gas (LNG) cooperation — significant given Pakistan’s reliance on imported LNG for power generation and industry.
He also met Türkiye’s Energy Minister, Alparslan Bayraktar, who announced plans to send a TPAO seismic vessel to Pakistan to begin data collection in the Indus Basin, a step toward expanding domestic oil and gas exploration.
At home, the government is pursuing a set of longer-term measures: building strategic petroleum reserves, expanding storage capacity, upgrading refineries, increasing domestic production and establishing bonded reserves. The goal is to make Pakistan less vulnerable to the next supply shock, not just to weather the current one.
Bottom Line
Libya’s offer is a genuine opening, but it is not yet a deal. What matters now is what happens between the ministerial handshake and the first tanker: NOC allocations, refinery-level commercial terms, and shipping economics. If those pieces fall into place, Pakistan gains a meaningful new source of crude from outside the Gulf — a real step toward the energy security the government says it wants. If they don’t, Riyadh will remain what it is today: a promising conversation about oil, not a contract.
For Pakistani consumers watching petrol prices, the practical takeaway is patience. Diversification strengthens the country’s bargaining position over time, but it will not change pump prices next week. The value of this week’s development is strategic: every additional supplier gives Pakistan one less point of failure in its energy lifeline.
