Libya Awards First Oil, Gas Exploration Bid Round in 17 Years

Libya awarded its first oil and gas exploration and production licensing round in more than 17 years, granting rights to six international energy companies in a move aimed at revitalizing a sector battered by more than a decade of political turmoil.

The National Oil Corporation (NOC) announced Wednesday that major global players, including U.S.-based Chevron, Italy’s Eni, QatarEnergy, Türkiye’s state oil company, Spain’s Repsol, and Nigeria’s Aiteo, had secured exploration blocks under the long-awaited tender.

The bid round, covering 22 onshore and offshore blocks, 11 of them offshore, marks a pivotal step in Libya’s effort to restore investor confidence and stabilize output following years of conflict that severely constrained production.

Since the 2011 uprising that toppled Muammar Gaddafi, Libya’s oil and gas sector has struggled with recurring shutdowns, infrastructure damage, and political fragmentation. Although the country remains a key member of OPEC and holds Africa’s largest proven hydrocarbon reserves, production has been volatile for much of the past decade.

Recent improvements in security and political coordination, culminating in a ceasefire agreement at the end of last year, have paved the way for renewed investment.

The NOC estimates that Libya’s crude oil production reached 501 million barrels in 2025, with an average output of 1.374 million barrels per day, the highest annual average in the past ten years. Current production stands at approximately 1.4 million barrels per day.

Authorities are targeting a significant expansion, aiming to raise output to 2 million barrels per day before 2030, surpassing the country’s historic peak of 1.75 million barrels per day recorded in 2006.

The 22 blocks offered in the licensing round are believed to contain substantial hydrocarbon potential. According to industry estimates cited in previous reports, the areas include roughly 10 billion barrels of available resources, in addition to an estimated 18 billion barrels yet to be discovered.

The allocation of licenses reflects a diversified mix of international partnerships. A consortium comprising Italy’s Eni and QatarEnergy secured an offshore exploration license, underscoring continued European and Gulf interest in Libya’s offshore potential. U.S. energy major Chevron won exploration rights for a block in the Sirte Basin, one of Libya’s most prolific hydrocarbon regions. Nigeria’s Aiteo was awarded acreage in the Murzuq Basin in the country’s southwest, expanding its footprint in North Africa. 

Meanwhile, a consortium formed by Türkiye’s state petroleum company and Spain’s Repsol obtained exploration rights in the Cyrenaica (Barqa) Basin, further broadening the international presence in Libya’s upstream sector.

The awards were announced in the presence of Abdul Hamid Dbeibeh, head of the Government of National Unity, underscoring the political weight attached to the sector’s revival.

NOC Chairman Masoud Suleman confirmed that Libya intends to launch an additional exploration and production bid round later this year, signaling sustained momentum in reopening the upstream sector to global capital.

Beyond exploration, Libya is also seeking to expand and modernize existing fields. In a separate move aimed at restoring the confidence of major Western oil firms that scaled back operations after 2011, Libya recently signed a long-term investment agreement with France’s TotalEnergies and U.S.-based ConocoPhillips.

The agreement, valued at more than $20 billion over 25 years, will focus on boosting output capacity at the Waha oil project, one of the country’s key producing assets.