Libya’s National Oil Corporation (NOC) has signed a landmark set of production-sharing agreements with major international energy companies, signalling a decisive turning point in the country’s long campaign to revive its upstream oil and gas sector. The agreements, announced by NOC Chairman Massoud Suleman, follow Libya’s 2025 licensing round — the first the country has held in nearly two decades.
Three separate agreements were executed. The first was concluded between the NOC and Spain’s Repsol in partnership with Turkey’s state-owned Türkiye Petrolleri A.O. (TPAO), covering exploration and development work under the technical and contractual terms of the licensing round. The second was signed with Italy’s Eni and QatarEnergy, bringing two of the world’s most active deepwater operators together in a joint bid to expand exploration across Libya’s hydrocarbon-rich basins.
The third agreement involves a consortium comprising Hungary’s MOL Group alongside TPAO and Repsol, specifically for the O7 deepwater offshore block in Libya’s Mediterranean waters. Repsol serves as operator with a 40 percent interest, TPAO holds an identical stake, and MOL Group retains the remaining 20 percent. Located approximately 140 kilometres northwest of Benghazi, the O7 block spans more than 10,300 square kilometres at water depths exceeding 1,500 metres. The minimum work programme requires acquisition of 1,500 kilometres of 2D seismic data, 2,300 square kilometres of 3D seismic data, and the drilling of at least one exploration well.
“We are excited that our joint project with Repsol and TPAO has entered a new phase with the signing of a production sharing agreement,” said Zsombor Marton, Executive Vice President of Exploration and Production at MOL Group. “Libya holds strategic importance for Europe and offers an exceptional offshore exploration opportunity in North Africa.”
Libya awarded exploration blocks in February to companies including Chevron, Eni, QatarEnergy and Repsol under the 2025 bid round, despite persistent political tensions between rival administrations in the country’s east and west. The NOC said the new agreements reflect growing international confidence in Libya’s oil sector and form part of its broader strategy to attract quality investment, enhance exploration activities, and ultimately raise the country’s production capacity to 2 million barrels per day — up from current output of approximately 1.4 million bpd.
Suleman said the deals represent another milestone in Libya’s ongoing effort to position itself as a premier destination for upstream investment in North Africa and the Mediterranean basin.
Source: worldoil.com | libyaobserver.ly | agbi.com