Libya awarded new oil exploration and production licences to several international companies on Wednesday, marking the first such licensing round in 17 years as the North African nation seeks to revitalize its critical energy sector after years of turmoil.
The National Oil Corporation (NOC) granted licences for five onshore oil blocks. The winners include U.S. major Chevron and Nigeria’s Aiteo. Consortiums comprising Spain’s Repsol with Britain’s BP, Repsol with Hungary’s MOL Group, and Eni North Africa with QatarEnergy were also successful. A previous bid for 20 blocks, which included 11 offshore areas, received no offers for the offshore parcels.
The move is a central part of Libya’s strategy to attract major global energy firms back into its oil fields and boost production. The country, which sits on Africa’s largest proven oil reserves estimated at 48.4 billion barrels, currently produces about 1.5 million barrels per day. The NOC has set a target to increase daily output by 850,000 barrels over the next 25 years.
“Today’s announcements are not merely technical or administrative,” said Masoud Suleman, Chairman of the NOC, during the ceremony. “They are part of a broader national path that aims for prosperity, growth, the return of normalcy.” He described the awards as “a return of trust and resuming institutional work” and pledged to operate with “integrity, transparency, equal opportunities” to “maximise national returns.”
This development follows significant recent investment agreements. Last month, Libya signed deals worth over $20 billion with France’s TotalEnergies and U.S. firm ConocoPhillips, also aimed at expanding production within a 25-year timeframe.
The licensing round occurs against a backdrop of persistent challenges. Libya’s oil industry has been repeatedly disrupted by security issues and political fragmentation since the 2011 NATO-backed uprising that overthrew and killed longtime leader Muammar Gaddafi. The country remains divided between rival governments, which has historically hampered long-term investment and operational stability.
Suleman indicated the process would continue, announcing another licensing round is planned for later this year. The successful conclusion of this round and the commitment of major international partners signal a concerted effort to rebuild Libya’s oil economy, a vital source of revenue for a nation seeking lasting stability and economic recovery.
