Libya has awarded oil and gas exploration blocks to foreign companies, including Chevron, Eni, QatarEnergy, and Repsol, marking its first licensing round in nearly 20 years as the country seeks to revive its energy sector despite ongoing political divisions.
According to Reuters, the National Oil Corporation (NOC) announced the winners of the first bid round since 2007, allocating key acreage across the onshore Sirte and Murzuq basins and offshore blocks in the gas-rich Sirte basin of the Mediterranean.
The awards signal renewed interest after years of caution from foreign investors due to Libya’s unstable operating environment following the 2011 overthrow of longtime leader Muammar Gaddafi.
Libya remains politically split between rival administrations in the east and west, and disputes over the central bank and oil revenue often lead to force majeure declarations at major oil fields.
In the licensing round, five of the 20 available blocks were awarded. Last month, Libya signed a 25-year oil development deal with France’s TotalEnergies and ConocoPhillips.
NOC Chairman Massoud Suleman said that differences over drilling commitments and participation stakes meant several blocks were not awarded in this round, and the results would help improve future contract terms to align with global market conditions.
He added that further negotiations could take place for blocks that received no bids.
Eni and QatarEnergy won rights to Offshore Area 01 in the Sirte basin, strengthening a strategic partnership that has expanded across the Mediterranean.
A consortium of Repsol, Hungary’s MOL, and Turkey’s state-owned TPOC secured Offshore Area 07, also in the Sirte basin.
Chevron obtained the Sirte S4 exploration licence, marking a notable return to Libya’s most productive onshore basin.
In the southern Murzuq basin, Nigerian oil company Aiteo won the M1 licence, representing a rare entry by an African independent into Libya’s upstream sector.
The involvement of Turkey’s TPOC in two separate licences, including the onshore C3 block with Repsol, underscores the growing ties between Ankara and Tripoli, where the internationally recognised Government of National Unity led by Prime Minister Abdulhamid Dbeibah is based.
QatarEnergy’s participation alongside Eni could indicate Libya’s interest in leveraging Doha’s gas expertise as it aims to expand gas exports to Europe by 2030.
The round used a new, more investor-friendly contract model to replace rigid terms that previously discouraged investment.
Libya is targeting a production capacity of 2 million barrels per day, up from current output of around 1.4 million bpd.
“Libya is a priority country in Repsol’s portfolio where it sees continued potential through targeted investments in exploration, production enhancement, and infrastructure optimization,” Repsol said in a statement to Reuters.
Image Credit: Baird Maritime
