In a watershed moment for Libya’s energy sector, the North African nation has awarded its first foreign oil exploration and production licenses in nearly two decades, with energy majors Chevron, BP, Eni, and QatarEnergy securing coveted blocks across the country’s petroleum-rich regions. The National Oil Corporation announced the results of the competitive 2025 licensing round on Wednesday, marking a dramatic return of international confidence in Libya’s hydrocarbon sector thirteen years after the fall of Muammar Gaddafi.
Chevron secured the prized Sirte S4 block in Libya’s most prolific oil province, which has historically produced over 90% of the country’s oil output. In the offshore Mediterranean region, Italian energy giant Eni partnered with QatarEnergy to win Offshore Area 01, covering approximately 29,000 square kilometers in the gas-rich extension of the Sirte province. Spanish oil company Repsol, together with BP, Hungary’s MOL Group, and Turkey’s state-owned petroleum company, secured multiple blocks including Offshore Area 07 and the C3 block in the northeastern Sirte Basin. Nigeria’s Aiteo made a significant entry into Libya’s upstream sector by winning the M1 block in the southern Murzuq Basin.
However, the licensing round drew a lukewarm response with only five blocks attracting bids out of twenty offered, signaling persistent concerns about Libya’s political instability and security risks. The country currently produces around 1.5 million barrels per day and aims to reach two million barrels daily by 2030, leveraging Africa’s largest oil reserves estimated at 48.4 billion barrels. The successful bidders will operate under Libya’s investor-friendly EPSA V framework, with license agreements expected to be formally signed in Tripoli before the end of February.
Source: newarab.com, energy-pedia.com, energycapitalpower.com, trend.az