Libya’s National Oil Corporation (NOC) has awarded exploration and production licenses to a consortium of international energy firms, marking the first such licensing round since the fall of Muammar Gaddafi in 2011. The deals, signed in recent weeks with companies from the United States and France, are collectively valued at approximately $20 billion, according to officials at Middle East Eye.
The agreements grant foreign companies access to Libya’s substantial, largely untapped oil and gas reserves. TRT Afrika reported that the licenses represent a significant step towards revitalizing Libya’s energy sector, which has been hampered by years of conflict and political instability. The NOC confirmed the awards, but details regarding specific blocks and participating companies remain limited.
The licensing round is considered a rare occurrence, reflecting a tentative stabilization of the political landscape. Al Jazeera noted that the move signals a willingness from Libyan authorities to attract foreign investment and boost oil production, a critical component of the country’s economy. However, the underlying political fractures within Libya continue to pose a risk to the long-term success of these ventures.
The agreements involve exploration in both onshore and offshore areas, with a focus on areas previously unexplored or underdeveloped. The $20 billion investment is expected to be phased in over several years, with initial exploration activities commencing in the coming months. The NOC has not publicly disclosed the revenue-sharing arrangements with the foreign partners.
Libya’s oil reserves are the largest in Africa, estimated at over 48 billion barrels. Despite this vast potential, production has fluctuated dramatically in recent years due to civil war, infrastructure damage, and political disputes over control of oil facilities. The NOC is currently working to increase production to 2 million barrels per day within the next few years, a target that hinges on sustained political stability and continued foreign investment.
The licensing round has been met with cautious optimism from international energy markets. Analysts suggest that the deals could help to alleviate global supply concerns, but also highlight the inherent risks associated with operating in a politically volatile environment. The NOC has stated its commitment to transparency and adherence to international standards, but concerns remain regarding corruption and the potential for disputes over contract terms.
As of Wednesday, February 18, 2026, the Libyan government has not issued a comprehensive statement outlining the full scope of the agreements or the specific obligations of the participating companies. The NOC has scheduled a press conference next month to provide further details, but the date remains subject to change.