Libya opens oil and gasfields in bid to attract multi-million dollar investments

Libya is poised to attract several hundred million dollars in new oil and gas investment as it prepares to award exploration and development licences to international energy companies next year.

This is the first time in more than 17 years that Libya, an Opec member, has opened its oilfields for new investments as it looks to boost production to two million barrels per day by 2030, from about 1.4 million bpd currently.

Several international oil companies including BP, Chevron, ExxonMobil, TotalEnergies, Eni, Shell and OMV have qualified for the new licensing round that covers 22 areas for oil exploration and development, with 11 blocks offshore and 11 onshore.

The government is expected to finalise licence awards by the end of February, with more than 30 companies competing for contracts.

The new licensing round comes as Libya’s economy, heavily reliant on hydrocarbons, is recovering strongly. Oil and gas account for nearly 95 per cent of exports and government revenue. The sector’s expansion has helped push real GDP growth to an estimated 13.3 per cent in 2025. By attracting foreign investment, the country aims not only to boost production but also to reinforce its broader economic recovery.

“It’s reasonable to expect several hundred millions to be committed in the round, higher if companies bid up offshore blocks,” Martijn Murphy, principal analyst for North Africa Upstream at Wood Mackenzie told The National.

“The real swing factor is the offshore Sirte, deepwater wells there can top $100 million each, so any competitive bidding will dramatically lift the total.”

The Sirte Basin in north-central Libya is the country's primary oil-producing region, holding most of its proven reserves − both offshore and onshore.

Libya produces some of North Africa’s cheapest, largely sweet oil, much of which has remained offline since the 2011 civil war