Libya’s National Oil Corporation (NOC) has announced the outcome of its first large-scale international oil and gas licensing round in nearly two decades, awarding five exploration blocks as part of a broader strategy to revive upstream investment and expand national production capacity.
The round, the first of its kind since 2007, offered 20 exploration blocks 11 onshore and nine offshore. Five blocks were awarded to a mix of international energy majors and regional companies, while 15 areas remain unallocated.
Awarded Blocks and Operators
According to official NOC results:
- Chevron (United States) secured Block S4 in the Sirte Basin.
- Eni (Italy) and QatarEnergy (Qatar) were awarded Offshore Area 01 in the Mediterranean (Cyrenaica region), marking QatarEnergy’s entry into Libya’s upstream sector.
- Repsol (Spain) and BP (United Kingdom) obtained Block NC210 in the Murzuq Basin.
- A consortium of Repsol, MOL (Hungary), and TPAO (Türkiye) secured Offshore Area 07 in the Sirte offshore region.
- Aiteo (Nigeria) was awarded Block M1 in the Murzuq Basin.
The offshore concessions target both oil and gas prospects in Mediterranean waters, while the onshore blocks focus on established hydrocarbon basins.
Production Expansion Strategy
Libya’s crude output currently averages between 1.4 and 1.5 million barrels per day (bpd). The NOC has set a medium-term target of increasing production to 2 million bpd within five years.
The licensing round was conducted under the revised EPSA V (Exploration and Production Sharing Agreement) framework, which the NOC says includes improved cost-recovery mechanisms and updated fiscal terms designed to attract foreign investment.
The awards follow a $20 billion agreement signed in January 2026 with TotalEnergies and ConocoPhillips to develop the Waha concessions over 25 years, reinforcing renewed international engagement in Libya’s energy sector.
Unawarded Blocks and Next Steps
Fifteen blocks including several offshore areas did not receive bids. NOC Chairman Masoud Suleiman stated that a technical review committee will assess contractual and fiscal terms for these areas. Direct negotiations with interested companies may also be considered.
Formal signing ceremonies for the awarded production-sharing agreements are expected in Tripoli before the end of February 2026. The NOC has also indicated that a second licensing round may be launched later in 2026, potentially re-offering unallocated blocks.
The outcome of this round represents a significant step in Libya’s efforts to stabilize and expand its hydrocarbons sector following years of political disruption and infrastructure constraints.
