Libya Seeks Global Oil Investment Amid Mixed Response to Licensing Round

Libya is attempting to draw major international energy companies back into its oil sector, as production and exports hit their highest levels since 2011. However, the country’s first licensing round in years drew limited interest, highlighting lingering concerns over political instability and security.

The National Oil Corporation (NOC) announced Wednesday’s winners, which included US giant Chevron, Nigeria’s Aiteo — Africa’s largest privately-owned energy company — and several consortiums: Spain’s Repsol with BP, Eni North Africa with QatarEnergy, and Repsol with Hungary’s MOLGroup and Turkiye Petrolleri. Out of 20 blocks offered, only five attracted bids.

Analysts noted the underwhelming response reflects ongoing uncertainty in Libya, which remains divided between rival authorities more than a decade after the NATO-backed revolt that toppled and killed longtime leader Muammar Gaddafi.

Hamish Kinnear of UK-based Verisk Maplecroft said, “Lingering uncertainty over Libya’s political dysfunction and insecurity in the areas around the blocks on offer were factors in the underwhelming response.” Geoff Porter of North Africa Risk Consulting called the bids “a considerable disappointment” compared to expectations, suggesting that direct negotiations with NOC, such as last month’s $20 billion deals with TotalEnergies and ConocoPhillips, may offer more attractive terms than competitive bidding.

Libya currently produces around 1.5 million barrels of oil per day and holds Africa’s largest oil reserves, estimated at 48.4 billion barrels. Prime Minister Abdelhamid Dbeibah highlighted that agreements with TotalEnergies and ConocoPhillips aim to boost production by 850,000 barrels per day over the next 25 years.

NOC Chief Masoud Suleman emphasized that the licensing round still represents a step toward restoring trust and institutional normalcy in Libya’s oil sector. He announced plans to form a committee to improve bidding terms and negotiate with interested companies for unallocated blocks.

“The announced bids are part of a broader national path that aims for prosperity, growth, and the return of normalcy,” Suleman said, framing the limited participation as a cautious but positive sign for Libya’s long-term energy ambitions.