Libya Grants Foreign Oil Companies Exploration Licences after 17 Years
Libya has granted new oil exploration and production licences to foreign companies for the first time in 17 years. The move is aimed at reviving the country’s energy sector and attracting global investors after years of political instability.
The National Oil Corporation (NOC) announced the winners of the latest bidding round on Wednesday. US oil giant Chevron and Nigeria’s Aiteo secured licences, alongside consortiums involving Spain’s Repsol with British Petroleum, Repsol with Hungary’s MOLGroup, and Eni North Africa with QatarEnergy.
NOC Chairman Masoud Suleman described the decision as a “return of trust” in Libya’s oil industry. He pledged integrity, transparency, and equal opportunities in the licensing process, while stressing that the country hopes to boost daily oil production by 850,000 barrels over the next 25 years.
Libya currently produces about 1.5 million barrels of oil per day and holds Africa’s largest reserves, estimated at 48.4 billion barrels. However, the industry has struggled since the 2011 NATO-backed revolt that toppled Muammar Gaddafi. Political divisions and security challenges have slowed investment and disrupted production.
Suleman said the new licences are not just technical agreements but part of a broader national plan for prosperity, growth, and stability. He added that another licensing round will be held later this year.
Last month, Libya signed investment deals worth more than $20 billion with TotalEnergies and ConocoPhillips to increase production over the next 25 years. The NOC had opened bids for 20 oil blocks, including 11 offshore, but none of the offshore blocks received offers. On Wednesday, five blocks were licensed.
Officials say the return of major international oil companies signals renewed confidence in Libya’s energy sector. With these agreements, Libya hopes to strengthen its position in the global energy market and secure long-term economic stability.
