Libya signs $20bn oil deal with TotalEnergies and ConocoPhillips to boost output

Libya has signed a 25-year agreement to develop its oil sector with TotalEnergies (EPA: TTE) and ConocoPhillips (NYSE: COP), securing foreign investment exceeding $20bn, PM Abdul Hamid Dbeibah said in a post on X on January 24.

Dbeibah said the long-term deal is structured within Waha Oil Company, a subsidiary of Libya’s National Oil Corporation, and will be financed externally, without drawing on the state budget. According to Arabian Business, the agreement aims to lift output capacity by up to 850,000 barrels per day (bpd), generating net revenues for the state estimated at more than $376bn over its lifetime.

Waha Oil’s current production typically ranges between 340,000 and 400,000 bpd under normal operating conditions. Waha operates five major oil and gas fields, along with several satellite fields, linked by pipeline networks transporting crude to the Sidra oil terminal and gas to processing facilities.

On the sidelines of the Libya Energy and Economy Summit in Tripoli, the government also signed a memorandum of understanding with Chevron and a cooperation agreement with Egypt’s Ministry of Petroleum.

Separately, Masoud Suleiman, chairman of the National Oil Corporation, said the results of Libya’s first oil and gas licensing round in more than 17 years will be announced on February 11.

Libya, one of Africa’s largest oil producers and a member of OPEC, has struggled to attract sustained foreign investment amid political instability and repeated disruptions to production since 2011.

The North African country broke 12-years oil production record in 2025 with 1.37mn bpd. However, political struggles, systemic fuel smuggling and the weaponisation of oil terminals by local militias continue to drain national revenues and deter the long-term foreign investment needed to reach its 2mn bpd target.