Libya has reopened its oil and gas sector to foreign investors for the first time in nearly two decades, awarding new exploration and production licences to a group of major international energy companies. The announcement was made in Tripoli during a ceremony hosted by the National Oil Corporation (NOC), attended by Prime Minister Abdul Hamid Dbeibah, senior officials and representatives from the energy industry.
Companies granted licences include US-based Chevron and UK energy firm BP. Other successful bidders were Nigeria’s Aiteo, Spain’s Repsol participating in separate consortiums Hungary’s MOL Group, Turkish Petroleum, Eni North Africa, and QatarEnergy.
The bidding round made 20 exploration areas available, including 11 onshore and nine offshore blocks across the Sirte and Murzuq basins and parts of the Mediterranean. However, interest proved more limited than expected, with bids submitted for just five blocks.
Energy analysts said the outcome fell short of expectations, particularly as dozens of international firms had completed pre-qualification. Ongoing political fragmentation and security risks were cited as possible reasons for the cautious response. Libya remains divided between the UN-recognised administration in Tripoli and an eastern authority backed by military commander Khalifa Haftar. Some observers also suggested that certain companies may prefer negotiating terms directly with the NOC rather than participating in structured public bidding rounds.
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Restoring confidence
Libya’s oil industry has struggled with repeated shutdowns and instability since the 2011 uprising that led to the removal of longtime leader Muammar Gaddafi. Exploration activities had been largely dormant for more than 17 years before resuming earlier in 2025.
To attract investors, the NOC carried out updated seismic surveys and technical assessments of the offered blocks, providing companies with new data ahead of the bidding process. Libya currently produces about 1.5 million barrels of oil per day and holds the largest proven oil reserves in Africa, estimated at more than 48 billion barrels. Production in 2025 reached its highest level in over a decade.
In addition, the government recently concluded investment agreements exceeding $20 billion with TotalEnergies and ConocoPhillips aimed at expanding output over the next 25 years. Officials say the long-term objective is to significantly increase daily production capacity.
NOC Chairman Masoud Suleman described the latest licensing round as a key milestone in rebuilding Libya’s energy sector. He said further efforts would be made to refine the bidding framework and engage additional investors for blocks that remain unassigned.
While the number of awarded blocks was modest, authorities view the move as an important signal to global markets that Libya is ready to re-engage with international energy companies and strengthen its main source of national revenue.
