Libya has granted new oil exploration and production licences to several foreign companies for the first time in 17 years, marking a significant step in efforts to revitalise its energy sector after years of political instability.
The announcement was made on Wednesday during a ceremony in Tripoli, as the North African nation seeks to attract major global energy players back into its oil industry.
Among the successful bidders are U.S. oil giant Chevron and Nigeria’s Aiteo, Africa’s largest privately owned energy company.
Other winning consortiums include Spain’s Repsol partnering with British Petroleum; Eni North Africa with QatarEnergy; and Repsol with Hungary’s MOLGroup and Turkiye Petrolleri.
Out of 20 blocks offered for exploration and extraction, only five received bids, a response analysts described as underwhelming.
Libya’s oil sector has struggled since the 2011 NATO-backed uprising that toppled longtime leader Muammar Gaddafi, leaving the country divided between rival authorities and plagued by insecurity.
Despite these challenges, Libya’s oil and gas production and exports are currently at their strongest levels since 2011.
The country produces about 1.5 million barrels per day and holds Africa’s largest proven oil reserves, estimated at 48.4 billion barrels.
Energy analysts said the muted participation in the bidding round may reflect continued concerns about Libya’s political instability and security risks around the offered blocks.
Some experts also suggested that oil companies may prefer direct negotiations with Libya’s National Oil Corporation (NOC) rather than competitive tenders, especially after recent multi-billion-dollar agreements.
Last month, Libya signed deals worth more than $20 billion with TotalEnergies and ConocoPhillips aimed at boosting oil output over the next 25 years. Prime Minister Abdelhamid Dbeibah said the goal is to increase daily production by 850,000 barrels within that period.
In response to the limited turnout, NOC chief Masoud Suleman said a committee would be formed to review and improve the bidding framework and negotiate with companies over unallocated blocks.
He described the licensing round as a sign of renewed confidence in Libya’s institutions and a step toward economic growth and stability.
The NOC also announced plans for another bidding round later this year as the country continues efforts to rebuild and expand its vital oil sector.
