Libya’s New Oil and Gas Licensing Round: Real Change or Just a Signal?
After almost 20 years without major oil and gas licensing deals, Libya has opened its energy sector again to big international companies. This move could change the country’s oil-based economy. It also raises an important question: Is trust finally coming back to Libya’s institutions?
Reopening the upstream sector
In February, Libya’s state oil company, National Oil Corporation (NOC), announced the results of its first public oil and gas licensing round since 2007. The company offered 20 exploration blocks, both onshore and offshore. Out of these, five blocks received accepted bids. While this number is not large, it is still an important step forward.
Several international energy companies won exploration rights. Chevron was awarded an onshore block in the Sirte Basin. Nigeria’s Aiteo secured another onshore block in the Murzuq Basin.
A group led by Italy’s Eni, together with QatarEnergy, won a large offshore area in the Sirte Basin. Another offshore block near Benghazi went to a group including Spain’s Repsol, Türkiye’s TPAO, and Hungary’s MOL Group. Repsol and TPAO also won an onshore block in the Sirte Basin.
The licensing round started in March 2025 and included blocks that had already been studied through seismic surveys. According to NOC Chairman Masoud Suleman, this round could help revive Libya’s oil sector and even double oil production.
Although most blocks were not awarded, the return of large international companies sends a strong message. For many years, companies avoided Libya because of political risks. Now, some are willing to return.
Energy sector rebound
This licensing round comes at a time when Libya’s energy sector is improving.
After years of unstable production caused by political divisions, Libya’s oil output reached about 1.37 million barrels per day in 2025. This is the highest yearly average in 12 years. Oil revenues reached nearly $22 billion in 2025, about 15% higher than the previous year. Oil and gas still provide around 90% of the government’s income.
According to the latest survey from OPEC, Libya produced 1.25 million barrels per day in January.
Libya has the largest proven oil reserves in Africa. The country aims to raise production to 1.6 million barrels per day by the end of 2026 and eventually to 2 million barrels per day by 2030.
In January, Libya signed a 25-year, $20 billion development deal with France’s TotalEnergies and US-based ConocoPhillips. The deal is expected to increase production capacity significantly.
Libya is also expanding its gas sector. The $8 billion offshore Structures A&E gas project, led by Eni, is expected to start production in 2026. It will supply around 750 million cubic feet of gas per day to the national grid.
Is the recovery sustainable?
The return of global energy companies could be a major turning point. For years, foreign investors avoided Libya because of shutdowns, political competition between rival governments, and unclear contract terms.
This new licensing round is being offered under updated production sharing agreements that are designed to be more attractive to investors. However, risks remain. Political divisions between administrations in Tripoli and eastern Libya can still disrupt oil exports and infrastructure operations. Security challenges also continue.
The fact that major companies are returning shows they believe the possible profits are worth the risks. Libya is also important to Europe’s energy supply, especially after the war in Ukraine changed energy markets.
However, caution remains clear. Many blocks did not receive bids. Companies appear to be choosing areas with proven oil reserves and existing infrastructure.
For Libya, the key issue is not only signing contracts but making sure long-term stability continues. To turn this moment into lasting growth, Libya will need clear contracts, political stability, better security, and continued investment in its oil and gas infrastructure.
This licensing round may be the start of real change — but only time will show whether it leads to lasting recovery.
Published: 19th February 2026
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