Libya strives for return of normalcy by opening oil, gas sector to foreign explorations

In a rare step, Libya has granted new oil and gas exploration rights to foreign companies in an effort to revitalize its energy sector after years of political instability.

The state-run National Oil Corporation (NOC) this week announced the outcome of its first licensing round since 2007, including energy firms from Qatar, Türkiye, the United States, Nigeria and others.

The winning consortium includes US oil major Chevron; Africa's largest privately owned energy firm Aiteo (Nigeria); Türkiye's state-backed TPAO; Spain’s Repsol in partnership with BP; Eni North Africa alongside QatarEnergy; and Repsol together with Hungary’s MOL Group. 

NOC chief Masoud Suleman called the announcements “part of a broader national path that aims for prosperity, growth and the return of normalcy," revealing that there would be another licensing round later this year.

Prime Minister Abdelhamid Dbeibah, who announced the agreement, said the objective is to raise daily oil output by 850,000 barrels over that period. Libya currently produces around 1.4 million barrels per day.

The licensing round follows a $20 billion agreement signed last month with TotalEnergies and ConocoPhillips aimed at increasing oil production over the next 25 years.

The move reflects renewed — though cautious — international interest in Libya’s oil industry. Foreign investors have largely kept their distance since the country descended into conflict in 2011 following the overthrow of longtime leader Muammar Gaddafi. Still, analysts noted that participation fell short of expectations.

Libya had opened bids for 20 oil blocks, including 11 offshore, with 5 blocks receiving offers that led to licenses. 

Libya remains split between rival administrations in the east and west of the country. Ongoing disputes over the central bank and oil revenue distribution frequently disrupt output at major oil fields.

By Nazrin Sadigova