Libya awards limited oil exploration licenses to international companies

Libya Assigns Oil and Gas Exploration Rights to Foreign Firms

The National Oil Corporation (NOC) of Libya has announced the results of its first licensing round since 2007, awarding exploration rights to several foreign firms. The winning bidders include Chevron, Eni, QatarEnergy, and Aiteo.

According to the NOC, five out of 20 blocks on offer were awarded to these companies in a bid to revamp the country’s oil sector. This move comes after years of civil strife, which had deterred foreign investors from participating in the sector.

The licensing round used a new contract model, replacing previous terms that had discouraged investment. The NOC has stated its intention to increase daily oil production by 850,000 barrels over the next 25 years, with current production standing at approximately 1.4 million barrels per day.

France’s TotalEnergies and ConocoPhillips recently signed a $20 billion deal with Libya to boost oil production over the same timeframe. The deal was announced by Prime Minister Abdelhamid Dbeibah, who emphasized the goal of increasing daily oil production.

The NOC has also established a committee to further improve the terms of the bidding system and negotiate with candidates to grant unallocated blocks. This move aims to restore trust and resume institutional work in the sector after a long period of pause and challenges.

Source: Al Jazeera