Libya to Award First Oil and Gas Concessions in 18 Years

Libya plans to reveal the companies selected for its new oil and gas concessions between February and March 2026, the National Oil Corporation (NOC) announced on Monday. This will be the country’s first exploration licensing round in 18 years.

Scope of the Licensing Round

The tender covers about 20 onshore and offshore blocks. Several major international operators have already pre-qualified. Launched in 2024, the process is now in its final phase as authorities assess technical and financial bids.

Libya holds an estimated 48.4 billion barrels of proven crude reserves. This is the largest reserve base in Africa and roughly 3% of global supply, according to the U.S. Energy Information Administration. Political division and institutional uncertainty halted new exploration rounds for almost two decades, leaving large areas underdeveloped.

Reviving Upstream Activity

With the upcoming awards, authorities aim to restart exploration work through seismic surveys and drilling programs funded by successful bidders. This is expected to attract more partners, support project development, and lift production over time from the current level of around 1.4 million barrels per day. Confidence in this renewed effort has been bolstered by recent discoveries in the Sirte and Ghadames basins by OMV and the Arabian Gulf Oil Company (AGOCO), a subsidiary of the NOC.

Achieving Libya’s long-term production goals will depend heavily on sustained investment and operational stability. Oil and gas remain the backbone of the economy, contributing roughly 68% of GDP, 97% of export earnings and more than 90% of government revenue in 2024, according to the African Development Bank.

Read more about oil exploration in Africa HERE