Libya Signs New Oil Exploration Deals

Libya’s National Oil Corporation (NOC) has signed production-sharing agreements with several international energy companies following the country’s first oil and gas licensing round in nearly two decades.

NOC Chairman Massoud Suleman announced that the agreements were signed with a number of major energy firms, including Spain’s Repsol, Italy’s Eni, QatarEnergy and Türkiye’s state-owned Türkiye Petrolleri. A consortium involving Hungary’s MOL Group, Repsol and Türkiye Petrolleri also secured participation in the new deals.

The agreements stem from Libya’s 2025 licensing round, the first such exercise conducted by the country since 2007. The initiative is part of Libya’s efforts to attract foreign investment into its energy sector and increase crude oil production capacity from about 1.4 million barrels per day to 2 million barrels per day.

Libya possesses Africa’s largest proven oil reserves, and the energy sector remains the backbone of the country’s economy. Despite years of political divisions between rival administrations in the east and west of the country, authorities have continued to seek international investment to revive exploration activities and expand production.

Earlier this year, Libya awarded several exploration blocks to foreign companies, including Chevron, Eni, QatarEnergy and Repsol, signalling renewed interest in the country’s hydrocarbon resources.

Suleman said the latest agreements reflect growing confidence in Libya’s oil and gas sector and are expected to support exploration, field development and future production growth.

The companies involved have not yet disclosed the value of the agreements or timelines for the commencement of exploration activities.

SOURCE: Reuters