Libya grants foreign oil companies exploration licences

Libya granted several foreign companies new oil exploration and production licences for the first time in 17 years on Wednesday, after more than a decade of political instability.

The hydrocarbon-rich country is seeking to draw major global energy companies back, while boosting daily oil production by 850,000 barrels over the next 25 years.

The winners of the latest bidding round included US oil giant Chevron and Hungary's ALTEO.

Consortia of Spain's Repsol with British Petroleum, Repsol with Hungary's MOLGroup, and Eni North Africa with QatarEnergy, were also granted licences.

This marked "a return of trust and resuming institutional work in one of the country's most important sectors after a long time of pause and challenges", Masoud Suleman, head of the National Oil Corporation, said during the announcement ceremony.

The NOC chief also promised "integrity, transparency, equal opportunities" and to "maximise national returns".

Libya currently produces around 1.5 million barrels a day, sitting on Africa's largest oil reserves at an estimated 48.4 billion barrels.

But the oil industry has faced major challenges, including security issues, with the country still divided after a NATO-backed revolt toppled and killed longtime leader Muammar Gaddafi in 2011.

"Today's announcements are not merely technical or administrative," Suleman said. "They are part of a broader national path that aims for prosperity, growth, and the return of normalcy."

Last month, Libya signed agreements worth more than $20 billion in investment from TotalEnergies and ConocoPhillips to increase oil production over the next 25 years.

The National Oil Corporation had opened bids for 20 oil blocks, with 11 offshore, but none of the latter received offers. On Wednesday, five blocks were licensed. Suleman said there would be another licensing round later this year.