Libya has awarded new oil exploration and production licences to several international companies for the first time in 17 years, marking a significant step in the country’s efforts to revive its hydrocarbon sector following more than a decade of political turmoil.
The National Oil Corporation (NOC) announced on Wednesday that the licences were granted to five onshore oil blocks. Among the winners are U.S. major Chevron and Nigeria’s Aiteo. Several European and Middle Eastern consortiums also secured licences, including partnerships between Spain’s Repsol and Britain’s BP, Repsol with Hungary’s MOLGroup, and Eni North Africa with QatarEnergy.
Masoud Suleman, the head of the NOC, described the event as “a return of trust and resuming institutional work” in Libya’s most critical economic sector after a prolonged pause. He pledged that the NOC would operate with “integrity, transparency, [and] equal opportunities” to maximise national returns from the country’s vast oil resources.
Libya holds Africa’s largest proven oil reserves, estimated at 48.4 billion barrels, and currently produces approximately 1.5 million barrels per day. The NOC’s strategic goal is to boost daily output by 850,000 barrels over the next 25 years to attract major global energy firms back into the market.
The oil industry has been hampered by severe security issues and institutional fragmentation since the 2011 NATO-backed uprising that toppled Muammar Gaddafi. Suleman framed the licensing round as part of a broader national effort to achieve “prosperity, growth, the return of normalcy,” positioning the technical announcements within a context of stabilisation.
This licensing round follows substantial recent investment agreements. Last month, Libya signed deals worth over $20 billion with TotalEnergies and ConocoPhillips, also aimed at increasing production within a 25-year timeframe.
The NOC had initially offered 20 blocks—nine onshore and 11 offshore—but received no bids for the offshore acreage. Five onshore blocks were successfully awarded. Mr. Suleman indicated that another licensing round is planned for later this year, signalling a sustained effort to capitalise on Libya’s hydrocarbon potential and restore its position as a key energy supplier. The successful conclusion of this round is widely viewed as a critical indicator of improving investment climate and institutional functionality in the country.
