Libya pushes oil and gas expansion with new licensing round and foreign investments

Libya is intensifying efforts to expand its oil and gas sector, with Minister of Oil and Gas Dr. Khalifa Abdulsadek confirmed as a speaker at African Energy Week (AEW): Invest in African Energies 2025. The event will feature the Invest in Libyan Oil & Gas Summit, showcasing the country’s strategy to attract foreign investors and increase production.

Libya launched its 2025 licensing round in March, offering 22 exploration blocks—11 onshore and 11 offshore—aimed at adding 8 billion barrels of crude oil to its reserves within a 25-year strategy. With over 40 applicants already expressing interest, including major operators Chevron, TotalEnergies, ExxonMobil, and Eni, the round has positioned Libya as one of the most compelling opportunities in the region.

New agreements and modernized framework

Currently producing 1.4 million barrels per day (bpd), Libya is seeking to reach two million bpd through fresh investments and revitalized production. To build confidence in the bidding process, the National Oil Corporation (NOC) introduced an online platform ensuring secure and transparent access to technical, financial, and legal data. The bid opening will take place on November 15, 2025, with contract signings scheduled between November 22–30.

A key feature of the new licensing round is the introduction of the fifth generation Exploration and Production Sharing Agreement (EPSA V). This framework provides more competitive fiscal terms, attracting international oil companies while aligning national and investor interests. EPSA V shifts Libya from a concession-based system to a state-partnered model, offering predictability and stronger returns.

Foreign operators return to Libya

Major companies are re-engaging with Libya after years of reduced activity. ExxonMobil signed an MoU to conduct technical studies on offshore blocks in the Sirte Basin, marking its return after a decade-long hiatus. In July 2025, Shell and bp entered agreements with the NOC to evaluate and redevelop fields including Darir, Messla, and al-Atshan.

Beyond new exploration, Libya is revitalizing mature assets through Waha Oil Company and Mellitah Oil & Gas, using advanced technologies and infrastructure upgrades. Projects such as the Structures A&E development, Sabratha Compression, and Bouri Gas Utilization are expected to enhance output and bolster export capacity.

At AEW 2025, Minister Abdulsadek is set to present Libya’s roadmap to restore its role as a key global supplier. NJ Ayuk, Executive Chairman of the African Energy Chamber, emphasized, “Libya is rapidly positioning itself as a major global supplier, targeting two million bpd through fresh investment in greenfield and brownfield block opportunities.”