Libya has signed a series of production-sharing agreements with leading international energy companies, marking a significant milestone in the country’s efforts to revive exploration activity and expand oil production capacity.

The agreements were finalized by the National Oil Corporation (NOC) following Libya’s first oil licensing round in nearly two decades, signaling renewed investor confidence in one of Africa’s most resource-rich energy markets.

NOC Chairman Massoud Suleman said the deals underscore growing global interest in Libya’s oil and gas sector as the country works to attract foreign capital and accelerate upstream development.

Major energy companies secure exploration acreage

The agreements were signed with Spain’s Repsol, Turkey’s Türkiye Petrolleri, Italy’s Eni, and QatarEnergy. A separate consortium comprising MOL Group, Türkiye Petrolleri and Repsol also secured acreage.

The contracts stem from Libya’s 2025 bid round, under which international operators were awarded exploration blocks as the North African producer seeks to increase crude output to 2 million barrels per day, up from approximately 1.4 million barrels currently.

Africa’s largest oil reserves draw fresh interest

Libya holds the largest proven crude oil reserves in Africa, estimated at more than 48 billion barrels. The petroleum sector remains the backbone of the economy, generating roughly 90% of government revenue and supporting the country’s long-term development ambitions.

Despite ongoing political divisions between rival administrations in eastern and western Libya, the energy sector has demonstrated resilience. Oil production has recently stabilized at more than 1.5 million barrels per day, reaching its highest sustained levels in over a decade.

Strategic position in global energy markets

Libya’s reserves account for approximately 3% of global crude oil resources. Its premium light sweet crude is highly sought after by refiners because it produces high-value fuels and requires less intensive processing.

Beyond oil, Libya possesses substantial natural gas resources. Strategic fields including Wafa and Bahr Essalam supply domestic energy demand while also supporting exports to Europe through the GreenStream pipeline connecting Libya and Italy.

The latest agreements strengthen Libya’s position as a key African energy hub and highlight growing competition among global energy companies seeking access to some of the continent’s most attractive untapped hydrocarbon resources.