LIBYA REOPENS OIL LICENSING TO FOREIGN FIRMS FOR FIRST TIME SINCE 2011 CONFLICT
TRIPOLI: Libya has awarded new oil exploration and production licences to several international energy companies, marking the first such move since the 2011 uprising that toppled longtime leader Muammar Gaddafi.
The state-run National Oil Corporation announced Wednesday that major global firms, including Chevron and BP, were among the successful bidders. Africa’s largest privately owned energy firm, Aiteo, also secured a licence. Other winning consortiums included combinations involving Repsol, Eni, QatarEnergy, MOLGroup, and Turkiye Petrolleri.
However, the licensing round drew limited interest, with only five out of 20 available exploration blocks receiving bids. The NOC did not disclose the financial terms but indicated another bidding round would take place later this year.
Energy analysts said investor caution reflects ongoing political instability. Hamish Kinnear of Verisk Maplecroft told AFP the muted response was “underwhelming,” noting that uncertainty linked to Libya’s political divisions and security concerns likely deterred broader participation.
Libya remains divided between rival administrations, including the UN-recognised government in Tripoli led by Prime Minister Abdelhamid Dbeibah and eastern forces aligned with military commander Khalifa Haftar. This fragmentation has complicated governance of the oil sector despite its central role in the national economy.
Geoff Porter of North Africa Risk Consulting described the outcome as disappointing compared with expectations, telling AFP that companies remain wary about institutional reliability and operational risks in the country.
Libya currently produces about 1.5 million barrels of oil per day and holds Africa’s largest proven reserves, estimated at 48.4 billion barrels. The government hopes new investments will further expand output. Recent agreements signed with TotalEnergies and ConocoPhillips, valued at more than $20 billion, aim to increase production by an additional 850,000 barrels per day over the next 25 years.
Officials view the renewed licensing effort as a key step toward restoring Libya’s oil industry and attracting foreign capital, even as political divisions continue to shape investor confidence.