In a decisive move to reassert itself as a major energy player in North Africa and beyond, Libya has launched its first oil and gas exploration bidding round since 2008, offering 22 exploration blocks to international investors.
This long-anticipated round is a bold step towards reviving the country’s hydrocarbon sector, which has been hindered by years of political instability and underinvestment.
New Era for Libyan Oil
Announced by the National Oil Corporation (NOC), the 2025 licensing round includes 11 onshore and 11 offshore blocks situated across some of Libya’s most geologically promising basins, including the prolific Sirte, Murzuq, and Ghadamis regions, as well as unexplored areas in the Mediterranean Sea.
The NOC revealed that 19 of the 22 blocks contain undeveloped oil and gas discoveries, holding an estimated 1.63 billion barrels of oil equivalent.
The NOC has also modernized its fiscal model, transitioning from the former EPSA IV structure to more competitive production sharing agreements (PSAs) aimed at attracting top-tier international oil companies.
These revised contracts are said to offer more favorable terms, better risk-sharing frameworks, and enhanced investor protection.
“We are entering a new phase of development with transparency and global cooperation at its core,” said Farhat Bengdara, Chairman of the NOC. “Libya has long held untapped potential, and now is the time to unlock it for the benefit of our people and the broader global energy market.”
High Stakes and Global Attention
The bidding round has already garnered attention from global energy players, including Turkey’s TPAO and Italy’s Eni, both of which have expressed interest in offshore and onshore prospects.
Eni, in particular, is expected to resume exploration in the Ghadamis Basin in 2025, pending successful negotiations.
With oil prices stabilizing and demand for cleaner-burning fuel sources like natural gas rising, Libya’s reserves offer a strategic opportunity for companies looking to diversify supply away from overconcentrated markets.
Investment Needs and Economic Impact
Libya currently produces approximately 1.4 million barrels of oil per day (bpd) but aims to boost this to 2 million bpd over the next few years.
Achieving this milestone, however, will require $3 to $4 billion in infrastructure and upstream investments, including the rehabilitation of pipelines, drilling infrastructure, and processing facilities.
The bidding process is scheduled to run throughout 2025, with contracts expected to be finalized between November 22 and 30.
If executed as planned, this exploration round could trigger a wave of economic revival and job creation, particularly in Libya’s eastern and southern provinces where much of the onshore development will occur.
Balancing Promise with Political Risk
While the prospects are promising, Libya’s complex political landscape remains a concern. Regional power struggles and security challenges could influence the pace of development and investor sentiment.
However, recent progress in UN-backed peace efforts and a renewed commitment from the Libyan government to protect energy infrastructure have provided a cautiously optimistic backdrop for long-term planning.
A Strategic Win for Africa’s Energy Sovereignty
Libya’s move to reinvigorate its oil industry comes at a time when African nations are seeking greater autonomy over their energy resources, aiming to move from being mere exporters of raw commodities to global players with strategic control over value chains.
The success of this round could signal a broader shift toward energy sovereignty and economic independence across the continent.
If executed transparently and effectively, Libya’s reentry into competitive oil exploration could set a precedent for resource-rich African nations navigating post-conflict recovery and international re-engagement.
