Libya has signed a preliminary agreement with Chevron to assess its shale oil and gas resources, marking a potential new phase in the country’s efforts to expand energy production. The agreement, announced in April 2026, focuses on conducting geological and technical studies to evaluate the commercial viability of unconventional hydrocarbon reserves, as reported by Reuters.
The deal centres on Libya’s underexplored shale formations, which could significantly boost output if proven economically feasible. Officials say the partnership will leverage Chevron’s technical expertise in unconventional drilling to determine the scale and recoverability of these resources, as highlighted by Reuters.
Libya, which holds Africa’s largest proven oil reserves, has been seeking to diversify and increase production capacity following years of instability that disrupted its energy sector. The move into shale exploration reflects a broader strategy to modernise operations and attract foreign investment into new segments of the industry.
For Chevron, the agreement signals a cautious re-entry into Libya’s energy landscape, focusing initially on assessment rather than full-scale production. Analysts say the outcome of the studies will determine whether the partnership evolves into a long-term development project, with implications for both Libya’s output potential and global energy markets.
