Libya's National Oil Corporation (NOC) has launched its first oil and gas exploration tender in 18 years, attracting interest from 37 international companies, including energy giants such as Chevron, ExxonMobil, TotalEnergies and Eni. This tender, announced earlier this year, marks a turning point for Libya's energy sector, as the OPEC member aims to increase its oil production to 2 million barrels per day (bpd) by 2030, up from the current 1.4 million bpd.
The tender comprises 22 exploration blocks (11 onshore and 11 offshore) covering Libya's resource-rich basins. According to NOC Chairman Massoud Seliman, "almost all the major international companies" are participating in the tender, signalling strong global confidence in Libya's potential despite a challenging political and security environment. Contracts are expected to be finalised by the end of 2025, with successful bidders entering into production-sharing agreements that will require funding for seismic surveys and exploration activities, recoverable in the event of the discovery of commercially viable hydrocarbon reserves.
This round of tenders, the first since 2007, follows a decade of conflict and political instability that has hampered Libya's energy infrastructure. The country, which has Africa's largest oil reserves, estimated at 91 billion barrels of oil equivalent, has suffered setbacks in production due to sporadic violence and a lack of infrastructure maintenance. The NOC's new exploration initiative is part of a broader strategy to revitalise the sector, with Acting Minister of Oil and Gas Khalifa Abdulsadek indicating in January 2025 that an investment of $3-4 billion was needed to reach 1.6 million bpd in the short term.
The participation of major players such as Chevron, ExxonMobil, TotalEnergies and Eni underscores the importance of this tender. These companies bring considerable expertise and resources to the table, positioning Libya to benefit from advanced exploration technologies. Eni, in particular, is a long-standing player in Libya, having signed an $8 billion gas production agreement with the NOC in 2023. Other companies, such as BP, OMV and Repsol, have also resumed exploration activities in recent years, marking a gradual return of foreign investment to this North African country.
The appeal of this tender lies in Libya's untapped potential. The NOC estimates that the country has significant undiscovered oil and gas resources, making it a key player in meeting global energy demand, particularly for the transition to cleaner technologies where natural gas plays a central role. The tender cycle is expected to stimulate exploration in Libya's onshore and offshore basins, with projects such as the Bouri Gas Utilisation Project and the Structures A&E Development Project already underway to increase production capacity.
Despite the enthusiasm, Libya's energy ambitions face significant obstacles. The country remains divided between rival governments in the east and west, with recent clashes in Tripoli raising concerns about investor confidence. Analysts, such as Jalel Harchaoui of the Royal United Services Institute, have warned that ongoing violence and political fragmentation could deter companies not already active in Libya. "While this does not necessarily mean the end of the bidding cycle, it certainly undermines investor confidence," Harchaoui noted.
In addition, the NOC is undertaking internal reforms to address operational inefficiencies and transparency concerns. Following the departure of former president Farhat Bengdara, Massoud Seliman introduced measures to limit opaque practices, such as requiring transparent tendering processes and prioritising direct transactions with refineries. These reforms aim to restore confidence and ensure that Libya's oil revenues, which account for 95% of the country's income, are managed effectively.
The successful implementation of this tender could represent a turning point for Libya, which relies heavily on oil for its economic stability. The NOC's strategic plan includes the reactivation of nearly 1,000 closed wells and the mobilisation of funding to enable local companies to participate in exploration and maintenance. Events such as African Energy Week (AEW) 2025 will provide a platform to showcase these opportunities, fostering partnerships with global investors to drive long-term growth.
As Libya reopens its energy sector, the international community is watching closely. The outcome of this tender could not only reshape Libya's economy, but also position the country as a key player in Africa's evolving energy landscape. With global demand for oil and gas remaining robust, Libya's ambition to once again become a major energy producer is a significant challenge that could redefine its future.