Libya signs oil exploration contracts after a 17-year hiatus economy

The National Oil Corporation of Libya signed the final agreements for onshore and offshore exploration areas with a number of international energy companies that won the public bidding round, in a step that represents the first actual entry of international companies into new exploration projects in the country in about 17 years.

The head of the National Oil Corporation, Masoud Suleiman, said, In a speech he broadcast on his page on the social networking site Facebook, The signed agreements came after completing the legal procedures and registering the contracts with the competent authorities, indicating that the companies will begin drilling and exploration work in the plots for which the bids were awarded during the coming period.

Suleiman added that the step represents “an important event for the national economy,” explaining that the winning companies have begun opening branches inside Libya, and will work in accordance with Libyan laws regulating investment, including employing Libyan cadres and appointing Libyan executive directors in accordance with legal requirements.

The head of the corporation stressed that the success of the tour in attracting a number of major international energy companies reflects the return of confidence in the Libyan oil sector and the attractiveness of the available investment opportunities, after years of decline in exploration work due to the political and security turmoil that the country has witnessed since 2011.

According to the statement, the companies that completed the final signing included the Italian Eni and the Spanish Repsol, with the corporation set to complete the signing procedures with the American Chevron and the Nigerian I2 company in the coming days after the completion of the legal registration procedures.

Suleiman said that the Corporation gave priority to its local companies in the fields of drilling, exploration and oil services, as part of a plan aimed at enhancing local content and stimulating the Libyan private sector, noting that the results of the round will be referred to the National Unity Government to complete the final approval procedures.

Corporate returns

The agreements come within the first licensing round for oil and gas exploration launched by Libya since 2007, after a hiatus that lasted more than 17 years. The National Oil Corporation announced the launch of the round in March 2025, describing it as a step to return large areas of Libyan territory to the circle of oil exploration.

The Libyan News Agency “WAL” reported that the tour aims to open the way for specialized international companies to invest in the Libyan energy sector, add new oil and gas reserves, increase daily production, support the private sector and provide job opportunities for young people.

In July 2025, the agency said that 43 companies and one consortium participated in the first phase of the round, and that 29 companies qualified as operators and 8 companies as investors according to the approved criteria, before the institution announced the results of the round in February 2026.

Libya announced last February that the round resulted in the victory of the Repsol consortium with a Turkish partner, the Hungarian MOL company, the Eni consortium with Qatar Energy, in addition to the American Chevron and the Nigerian I2, after meeting the technical and financial evaluation criteria.

The agency stated in November 2025 that the projects proposed within the framework of the tour included 22 blocks for exploration, including 11 marine and others on land, with the aim of increasing Libya’s reserves of crude oil and gas and supporting increased production.

Production bet

In the new round, the National Oil Corporation seeks to compensate for the decline in exploration work over the past years, attract global technology and expertise, and raise the country’s ability to discover new resources in major basins such as Sirte, Murzuq, Ghadames, and offshore waters in the Mediterranean.

The corporation seeks to increase Libya’s oil production in the coming years, as it presents in its strategy published on its official website a vision for production ranging between two million and 3 million barrels per day, compared to a production of approximately 1.4 million barrels per day in the corporation’s recent data.

The US Energy Information Administration indicated at the beginning of 2024 that Libya possesses the largest proven oil reserves in Africa, at about 48 billion barrels, representing 41% of the continent’s total reserves.