Libya awarded new oil and gas exploration rights to several foreign energy companies on Wednesday, the country’s National Oil Corporation said, its first licensing round since 2007 as authorities seek to revive the sector after years of conflict.
The winners include U.S. major Chevron and Nigerian independent producer Aiteo, along with a number of international consortia. Among the partnerships selected were Spain’s Repsol with BP, Italy’s Eni North Africa with QatarEnergy, and another Repsol led group involving Hungary’s MOL Group and Turkiye Petrolleri.
The bidding process covered 20 exploration blocks, of which five were awarded, according to the NOC. Officials presented the results at a conference in Tripoli, where acting NOC chairman Masoud Suleiman Musa said the awards reflected renewed engagement with the country’s hydrocarbons industry following prolonged disruption.
Libya holds Africa’s largest proven crude reserves and relies heavily on oil exports for government revenue. Production has repeatedly been interrupted since 2011, when an uprising backed by a NATO air campaign led to the overthrow of longtime ruler Muammar Gaddafi and left rival administrations competing for authority.
The country remains politically divided between authorities based in the west and east. Disputes over control of the central bank and distribution of oil income have frequently triggered shutdowns at fields and export terminals, contributing to fluctuating output.
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Analysts said security and political risk likely tempered investor participation in the latest auction. Hamish Kinnear, an analyst with risk consultancy Verisk Maplecroft, said “lingering uncertainty over Libya’s political dysfunction and insecurity in the areas around the blocks on offer were factors in the underwhelming response.”
The licensing round followed a separate agreement announced last month with TotalEnergies and ConocoPhillips aimed at expanding production over a 25 year period. Prime Minister Abdelhamid Dbeibah said that project is intended to raise Libya’s daily output by about 850,000 barrels.
Libya currently produces roughly 1.4 million barrels per day, according to official figures. Authorities have repeatedly said restoring stable production is central to rebuilding state finances and public services.
Officials also introduced a revised contractual framework designed to attract investors after earlier terms were widely viewed in the industry as restrictive. Suleiman said a committee would be established to refine bidding conditions further and to negotiate with companies for the remaining unallocated blocks.
He described the awards as a sign of renewed cooperation between the state and international partners. “A return of trust and resuming institutional work in one of the country’s most important sectors after a long period of pause and challenges,” he said during the ceremony.
Foreign companies have cautiously reentered Libya’s energy sector in recent years as relative stability improved in parts of the country, although sporadic blockades and security incidents continue to affect operations. Armed groups and local factions have periodically halted production to press political or financial demands.
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Oil facilities have also been at the center of political bargaining, with closures often tied to disagreements over revenue sharing between competing authorities. Production outages have at times removed hundreds of thousands of barrels per day from global supply, influencing Mediterranean crude markets.
The NOC said the latest licensing process used a more flexible production sharing structure intended to provide greater incentives for exploration investment. The corporation did not disclose financial terms for individual blocks.
Companies awarded acreage must now complete contractual negotiations and conduct geological studies before exploratory drilling can begin, a process that can take several years. Commercial production would depend on the size and viability of any discoveries.
The NOC added that discussions with other applicants would continue in an effort to assign the remaining blocks offered in the round. Officials did not specify a timetable for concluding those negotiations.