United States and European oil giants are set to return to Libya, eligible for the country’s first oil exploration bidding in 18 years.
- Major energy companies are returning to Libya, seeking new oil and gas reserves nearly 15 years after political unrest.
- Libya’s National Oil Corporation announced plans for a public exploration bid round involving 22 blocks in February 2026.
- Top companies like Shell, Chevron, TotalEnergies, Eni, and ExxonMobil have shown interest in participating in these exploration efforts.
- Political divisions and Russian involvement present challenges but may be mitigated by increased investment from Western oil firms.
Libya’s National Oil Corporation (NOC) announced on Thursday that 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.
A Tripoli-led delegation has been in Washington this week to drum up interest in what will be Libya’s first auction of oil exploration licences in 18 years. The push underscores Tripoli’s efforts to restore investor confidence, raise output and counter growing foreign influence in the divided nation.
Top Global Players Line Up for 22 Blocks
Shell, Chevron, TotalEnergies, Eni and Repsol have all been pre-qualified to participate in the upcoming bid round, which spans 22 blocks — 11 offshore and 11 onshore, primarily in the Sirte Basin and parts of the Ghadames and Murzuq basins.
Their renewed interest comes after an August agreement granting ExxonMobil rights to explore for gas off the Libyan coast. “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,” Exxon told the Financial Times.
Momentum 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.
New Discoveries Boost Libya’s Energy Prospects
Recent exploration successes have further strengthened Libya’s case to investors. Earlier in November, Business Insider Africa reported that 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, fully owned by the corporation.
Not far from there, in the Sirte Basin, Austria’s OMV also struck oil. The country’s National Oil Corporationconfirmed 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.
These finds underline the depth of Libya’s untapped potential and come at a time when global companies are aggressively searching for new reserves.
Tripoli Targets Production Boost and Improved Terms
Libya aims to increase production from 1.4mn barrels per day to 2mn bpd by 2028–2030, potentially 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 5,000–20,000 bpd, will launch before the end of the year.
Political Divisions and Russian Influence
Despite renewed international interest, Libya remains split between two rival governments. The UN-recognised 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 the growing influence of Russia in Haftar-controlled areas. “We have a problem,” said senior Libyan official Mahmoud Ahmed Alfiste.
While the world recognises the NOC as the sole legitimate exporter of Libyan oil, “Haftar and his sons are controlling” parts of the country that contain critical reserves, he said. 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 stabilise 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.
