Chevron signs MoU to assess shale oil and gas potential in Libya

Libya's state-run National Oil Corporation (NOC) has signed a memorandum of understanding (MoU) with US energy major Chevron (NYSE:CVX) to conduct a joint study evaluating the North African country’s unconventional energy resources, Al Arabiya Business reported on April 28. 

Earlier in March 2026, Chevron signed a deal  with NOC to conduct a technical study on the NC 146 offshore block. 

The new study will cover three of Libya’s most significant basins: Sirte, Murzuq and Ghadames, all of which have long been central to the country’s hydrocarbon production.

The NOC chairman, Masoud Suleiman Mousa, said the agreement focuses on assessing the potential of shale oil and gas across several sedimentary basins in Libya. Preliminary estimates 123 trillion cubic feet of gas and approximately 18bn barrels of oil.

Mousa described the deal as an important step in advancing Libya’s energy sector, noting that cooperation with Chevron will help evaluate promising unconventional reserves. The move reflects Libya’s efforts to diversify its resource base and attract international expertise to develop technically complex reserves such as shale formations, which require advanced extraction technologies and significant investment.

In early 2026, Chevron intensified its re-entry into Libya by finalising an agreement with the NOC to explore several offshore and onshore blocks, specifically targeting the natural gas-rich Sirte Basin. This strategic push aims to raise Libya's production capacity toward a 2mn barrels-per-day target while securing new energy supply routes for the European market.