Libya Awards Oil Licenses to Global Firms, Plans Major Production Boost

Libya has granted oil licenses to companies including Chevron, BP, and Nigeria’s Aiteo for the first time since Gaddafi’s death. Only five of 20 blocks received bids, and another round is planned. Libya produces 1.5 million barrels per day and holds Africa’s largest oil reserves. Recent $20 billion deals with TotalEnergies and ConocoPhillips aim to boost production by 850,000 barrels daily over 25 years

Libya has recently granted oil exploration and production licenses to several international energy companies, including major global giants such as Chevron and BP, marking the first time such licenses have been awarded since the death of the country’s longtime leader, Muammar Gaddafi, in 2011. The North African nation’s oil industry has faced years of instability and significant operational challenges following the uprising that led to Gaddafi’s ousting and eventual death. Political uncertainty, intermittent conflicts, and security concerns have all contributed to disruptions in oil production and hindered foreign investment for over a decade.
Despite these challenges, Libya’s oil sector is now experiencing a period of relative stability, with production and exports reaching levels not seen since the turmoil of the past. The government is taking proactive steps to attract leading global energy companies to invest in and help develop the country’s vast oil resources. In this latest round of licensing, in addition to Chevron, the winners included Aiteo, Nigeria’s largest privately owned energy company, signaling a growing interest from African firms in Libya’s energy sector.
Other contractors awarded licenses were consortia formed by multiple companies, reflecting a collaborative approach to oil exploration in the country. Spain’s Repsol joined forces with BP, Eni North Africa partnered with QatarEnergy, and another consortium consisted of Repsol, Hungary’s MOL Group, and Turkiye Petrolleri. These partnerships demonstrate a combination of international expertise and regional investment aimed at tapping into Libya’s significant oil potential.
Despite the interest from major energy players, only five of the 20 blocks offered for exploration and production received bids, indicating that some investors may still be cautious due to the country’s complex political and security environment. The National Oil Corporation (NOC), which oversees the country’s oil sector, did not disclose the financial terms of the awarded licenses. However, officials confirmed that another bidding round is planned for later this year, suggesting that Libya remains committed to expanding foreign participation in its oil industry.
Libya currently produces around 1.5 million barrels of oil per day and is home to Africa’s largest proven oil reserves, estimated at 48.4 billion barrels. These reserves, coupled with rising production, position the country as a key player in the global energy market. Last month, Libya also signed agreements worth more than $20 billion with TotalEnergies and ConocoPhillips, aimed at increasing oil production over the next 25 years. Authorities have stated that the long-term goal of these investments is to raise daily oil output by an additional 850,000 barrels, a significant boost that could enhance the country’s economic stability and global energy influence.
With these developments, Libya is signaling its readiness to reassert itself as a major energy hub in Africa, attracting both regional and international investors despite past political and operational setbacks. The combination of high-quality reserves, improving production levels, and strategic partnerships with major energy companies suggests that Libya’s oil industry could experience substantial growth in the coming years, provided the country maintains relative political stability and continues to streamline regulatory processes for foreign investors.