Libya has granted new oil exploration and production licences for the first time in 17 years, marking a significant step in efforts to revitalise its energy sector after years of political instability and conflict.
The hydrocarbon-rich North African nation on Wednesday awarded licences to several foreign energy companies as part of a broader strategy to restore investor confidence and expand crude oil output. The move signals renewed institutional coordination within the oil industry, which remains the backbone of Libya’s economy.
The country is targeting an additional 850,000 barrels per day in production over the next 25 years. Officials believe fresh foreign investment, technical expertise and long-term partnerships will be critical to achieving that goal.
Among the successful bidders are US energy giant Chevron and Nigerian firm Aiteo. Other licence holders include consortiums involving Spain’s Repsol and British Petroleum, Repsol in partnership with Hungary’s MOL Group, as well as Eni North Africa working alongside QatarEnergy.
The awards were announced by Masoud Suleman, head of Libya’s National Oil Corporation. He described the development as a turning point for the sector, noting that it reflects a renewed level of trust in Libya’s oil institutions after nearly two decades without a licensing round.
According to Suleman, the reopening of exploration opportunities represents more than routine administrative activity. He said the initiative demonstrates a return to structured institutional operations within one of Libya’s most strategic sectors.
He further pledged that the National Oil Corporation would operate with integrity, transparency and equal opportunity while ensuring that national revenues are maximised as the country re-engages with global energy players.
Libya currently produces about 1.5 million barrels of crude oil per day. It holds Africa’s largest proven oil reserves, estimated at 48.4 billion barrels. Despite this vast potential, production has frequently been disrupted since the 2011 NATO-backed uprising that led to the fall of longtime leader Muammar Gaddafi. Political divisions, armed conflict and blockades have repeatedly affected output and investor confidence.
The latest licensing round followed the opening of bids for 20 oil blocks, 11 of which were offshore. However, none of the offshore blocks received offers during this round. Ultimately, five blocks were awarded on Wednesday. Suleman confirmed that another licensing round is expected later this year, suggesting that authorities remain committed to sustaining momentum in the sector.
Industry observers note that while Libya’s reserves remain highly attractive to international investors, security concerns and political fragmentation have historically complicated large-scale energy projects. The renewed licensing process may therefore be seen as both an economic and political signal, indicating efforts to stabilise governance structures linked to oil management.
In recent months, Libya has intensified engagement with international energy companies. Last month, the country signed agreements valued at more than 20 billion dollars with TotalEnergies and ConocoPhillips aimed at supporting long-term production growth over the next quarter century. These agreements, alongside the newly awarded licences, suggest a coordinated strategy to anchor economic recovery in oil sector expansion.
For Libya, oil revenues remain central to public spending, infrastructure development and social services. Any sustained increase in production could strengthen government finances, reduce fiscal pressure and support broader economic reforms. However, analysts caution that consistent output will depend on maintaining internal stability and safeguarding energy infrastructure.
The participation of multinational firms such as Chevron, Repsol, BP, Eni and QatarEnergy reflects a measured return of global interest in Libya’s energy prospects. These companies bring not only capital but also technical capacity required for exploration, drilling and enhanced recovery operations.
At the same time, competition for upstream assets across Africa has intensified as countries seek to attract foreign investment amid global energy transitions. Libya’s move may therefore be viewed within a wider continental context, where producers are balancing traditional hydrocarbon development with shifting global demand patterns.
While the absence of bids for offshore blocks could indicate caution among investors, the successful allocation of five onshore blocks represents a meaningful restart after a prolonged pause. Officials appear optimistic that improved regulatory clarity and institutional reforms will encourage broader participation in subsequent rounds.
The National Oil Corporation has emphasised that transparency and equal access will guide future licensing exercises. Ensuring credibility in the bidding process will be critical to maintaining international confidence and preventing disputes that have previously undermined sector growth.
Beyond immediate production targets, the broader objective is long-term stability. Suleman described the initiative as part of a national path toward prosperity, growth and the restoration of normal economic activity. Whether these ambitions materialise will depend on sustained political cooperation and security assurances across Libya’s regions.
For now, the awarding of new licences marks a notable shift in Libya’s post-conflict energy narrative. After nearly two decades without new exploration opportunities, the country is positioning its oil sector once again as a driver of economic renewal.
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