Libya reopens oil sector to international exploration after nearly two decades

Libya has initiated its first major oil and gas licensing round in nearly 20 years.
Numerous global energy companies, including ExxonMobil and Chevron, have expressed interest.
The government is offering 22 exploration blocks, with plans to increase oil production.

Top global energy firms including ExxonMobil, Chevron, TotalEnergies, and Eni are among those expressing interest in the North African country’s revitalised petroleum sector.

Masoud Suleman, Chairperson of Libya’s National Oil Corporation (NOC), revealed that nearly 40 multinational companies have so far shown interest in bidding for blocks in what is considered a significant milestone for the country’s post-conflict recovery.

First bid round since Gaddafi era

This marks Libya’s first substantial oil and gas tender since the 2011 uprising that ousted Muammar Gaddafi, triggering over a decade of political instability and violence. The last such international bidding round was conducted in 2007 under Gaddafi’s administration.

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According to the NOC, the government in Tripoli is offering 22 exploration blocks, divided equally between onshore and offshore areas, some of which contain untapped hydrocarbon discoveries.

Growing industry interest

Suleman confirmed that 37 major international oil companies, including nearly all of the world’s top producers, have expressed formal interest. Currently, Libya produces between 1.3 and 1.4 million barrels of oil per day (bpd), but the NOC aims to ramp up output to 2 million bpd within the next three years, provided sufficient foreign investment is secured.

The contracts will be structured under a Production Sharing Agreement (PSA) model, with signing expected by the end of 2025.

After years of withdrawal, key international players have begun to resume operations in Libya. In 2024, British Petroleum (BP) and Italy’s Eni recommenced drilling activities in the Ghadames Basin, in partnership with the Libyan Investment Authority.

Similarly, the American oilfield services company Weatherford returned in 2025 after more than a decade-long absence.

The NOC estimates that Libya holds approximately 91 billion barrels of untapped oil and gas reserves, positioning the country as one of the most promising—yet underexplored—energy frontiers in North Africa.

The road ahead: Risks and opportunities

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Despite renewed optimism, the success of this licensing round will depend largely on sustained political stability, improved security, and investor confidence. Turning exploration into meaningful production will require not only financial commitment but also governance reforms and infrastructural upgrades.

Libya’s move to attract international energy giants signals a potential turning point in its economic fortunes, offering both a boost to its domestic revenue and a reassertion of its relevance on the global energy stage.