Libya awards oil and gas exploration licences in first bid round since 2007

Libya has awarded new oil and gas exploration licences to major international energy companies, including Chevron (NYSE: CVX), Eni (BIT: ENI), QatarEnergy (state-owned), and Repsol (BME: REP), in its first bid round in nearly two decades as it seeks to revive the sector despite ongoing political risks, Al Sharq Al Awsat reported on February 11.

Libya announced plans to raise crude production capacity to 2mn barrels per day (bpd) from around 1.4mn currently, as it seeks to stabilise output and expand exports to Europe by 2030. To reduce the $9bn annual drain on the budget from fuel imports, the country plans to double refining capacity to 660,000 bpd.

The state-run National Oil Corporation (NOC) announced the winners of the round, the first since 2007, allocating acreage in the onshore Sirte and Murzuq basins as well as offshore blocks in the gas-rich Mediterranean.

Five of the 20 offered blocks were awarded, following last month’s 25-year development agreement with TotalEnergies (EPA: TTE) and ConocoPhillips (NYSE: COP).

Eni and QatarEnergy secured offshore Block 01, as both companies strengthen their Mediterranean partnership. A consortium of Repsol, MOL Group (BUD: MOL) and Turkish Petroleum Corporation (state-owned) won offshore Block 07 in the Sirte Basin.

Chevron obtained the Sirte S4 exploration licence, marking a significant return to Libya’s most prolific onshore hydrocarbon region. Nigeria’s EITEO (private) secured Block M1 in the Murzuq Basin.

Libya's oil sector is frequently hamstrung by political fragmentation, as rival governments and local militias often use the shutdown of oilfields and export terminals as a high-stakes bargaining chip for revenue and power.