Libya’s National Oil Corporation (NOC) announced it is entering the final stage of its first public exploration bid round since 2007, with companies expected to submit offers and open bids in February 2026, marking a significant milestone in the nation’s efforts to restore investor confidence and counter growing foreign influence.
Shell, Chevron, TotalEnergies, Eni, and Repsol have all been pre-qualified to participate in the upcoming bid round, which spans 22 blocks, including 11 offshore and 11 onshore locations primarily in the Sirte Basin and parts of the Ghadames and Murzuq basins.
A Tripoli-led delegation has been in Washington this week to drum up interest in what represents Libya’s first auction of oil exploration licenses in nearly two decades. The push underscores Tripoli’s efforts to restore investor confidence, raise output, and counter growing foreign influence in the politically divided nation.
The renewed interest from major energy companies comes nearly 15 years after political unrest disrupted the sector. An August agreement granting ExxonMobil rights to explore for gas off the Libyan coast helped build momentum. “We look forward to working with the Libya National Oil Corporation to fully evaluate Libya’s potential and leverage ExxonMobil’s leading capabilities to jointly explore for new resources,” ExxonMobil stated.
Interest has grown since July, when Shell and BP confirmed agreements with the NOC to assess opportunities. British Petroleum is studying rehabilitation of the Sarir and Messla fields and unconventional resource potential, while Shell may develop the Atshan field near the Algerian border. Eni has restarted drilling in the Ghadames Basin with BP and the Libyan Investment Authority.
Recent exploration successes have strengthened Libya’s case to investors. Earlier in November, NOC uncovered new crude reserves through its wholly-owned subsidiary, the Arabian Gulf Oil Company (AGOCO), in the Ghadames Basin near the Libyan-Algerian border. The newly drilled H1-NC4 well is estimated to produce approximately 4,675 barrels of crude oil per day and about 2 million cubic feet of natural gas.
In the Sirte Basin, Austria’s OMV also struck oil. The National Oil Corporation confirmed that production tests at the exploratory well in Block 106/4, drilled to a depth of 10,476 feet, are yielding more than 4,200 barrels per day, with gas output exceeding 2.6 million cubic feet daily.
Libya aims to increase production from 1.4 million barrels per day to 2 million barrels per day by 2028-2030, potentially representing the largest capacity expansion in OPEC+ after the UAE and Iraq. To attract investment, Tripoli is offering new production-sharing agreements and has revised its previously stringent fiscal terms. “Terms are more attractive today than historically they have been,” Chevron CEO Mike Wirth said.
NOC estimates the 22 bid-round blocks contain 1.63 billion barrels of discovered oil and gas in place, with potential finds of 18 billion barrels, adding to Libya’s 48 billion barrels of proven reserves. A separate auction for more than 40 marginal fields, each capable of producing 5,000 to 20,000 barrels per day, will launch before year’s end.
Despite renewed international interest, Libya remains split between two rival governments. The UN-recognized Tripoli administration controls the west, while General Khalifa Haftar holds much of the east and south, including key oil sites. During meetings in Washington, Libyan officials warned of growing Russian influence in Haftar-controlled areas.
While the world recognizes the NOC as the sole legitimate exporter of Libyan oil, senior Libyan official Mahmoud Ahmed Alfiste noted that “Haftar and his sons are controlling” parts of the country containing critical reserves. Moscow has long backed Haftar and has expanded its military footprint across eastern and southern Libya.
Tripoli officials told U.S. counterparts that expanded involvement by Western oil companies could help reinforce the NOC’s national authority, weaken Russian leverage, and ultimately stabilize the country. They also argued that increased Libyan oil and gas supplies could serve as an alternative to Russian energy for global markets, particularly as Europe continues its pivot away from Moscow.
Source: africa.businessinsider.com