Libya to launch bid for 22 oil blocks, largest round in 18 years

Libya plans to launch a historic oil exploration bidding round covering 22 blocks (11 offshore and 11 onshore) in the country’s largest initiative of its kind since 2007, Akhbar Libya reported on December 4. The move aims to attract major international companies to invest in the development of Libya’s oil and gas resources.

Key areas such as the Sirte Basin offer the majority of reserves, while Ghadames and Murzuq provide significant gas and frontier exploration potential.

The North African country holds 48bn barrels of proven oil reserves, the largest in Africa, with current production at 1.4mn barrels per day (bpd), potentially rising to 2mn bpd within three years if capital investments and operational stability are secured. 

The National Oil Corporation (NOC) has an ambitious plan to significantly increase the country's oil production. It said that achieving this goal requires billions of dollars in investment for rehabilitating damaged infrastructure, developing new fields, and attracting international partners to bolster capacity and exploration.

The NOC has introduced more competitive fiscal terms, including enhanced cost recovery, improved profit oil shares, simplified regulatory approvals, and reduced signature bonuses to make the blocks more appealing than pre-2011 contracts. 

International oil majors like ExxonMobil (NYSE:XOM), Shell (LSE/ NYSE:SHEL), and Chevron (NYSE:CVX) have already shown interest, applying advanced seismic interpretation and deepwater drilling expertise.

Companies are weighing political and operational risks, particularly the divided control between the Government of National Unity (GNU) in the west and the Libyan National Army (LNA) in the east. Libya’s oil development and expansion could add 8bn barrels over 25 years.