Libya’s National Oil Corporation (NOC) has awarded new oil and gas exploration rights to foreign firms, marking a significant step to revitalise its oil sector after years of civil conflict.
The first licensing round since 2007 saw US oil giant Chevron and Nigeria’s Aiteo, Africa’s largest privately-owned energy company, secure rights.
Other successful bidders included Spain’s Repsol in partnership with British Petroleum, Eni North Africa alongside QatarEnergy, and Repsol with Hungary’s MOLGroup and Turkiye Petrolleri.
The results signal a renewed, though cautious, interest in Libya’s oil sector, which had long been avoided by foreign investors due to the instability following the 2011 overthrow of Muammar Gaddafi.
Despite the awards, experts noted that the response was smaller than anticipated, with Hamish Kinnear, an analyst at Verisk Maplecroft, citing Libya’s ongoing political dysfunction and security concerns as factors contributing to the underwhelming response.
The country remains divided between rival administrations, with disputes over the central bank and oil revenues often disrupting production at key fields.
The licensing round, which saw five of 20 available blocks awarded, follows a $20 billion deal with France’s TotalEnergies and ConocoPhillips to boost production over the next 25 years.
Prime Minister Abdelhamid Dbeibah has set a goal of increasing daily oil production by 850,000 barrels within that period, up from the current 1.4 million bpd.
The new round utilised an investor-friendly contract model, replacing rigid terms that previously deterred investment.
NOC’s Masoud Suleman announced plans to further improve the bidding system and negotiate with other companies for unallocated blocks.
