Libya has opened its doors to foreign investors with the launch of its first oil exploration and development bidding round in over 17 years.
The country is offering 22 blocks for exploration, equally split between onshore and offshore locations, as it seeks to revitalise its energy sector and increase crude output.
The bidding round, which commenced on March 3, will operate under a Production Sharing Agreement (PSA) model, a move intended to attract more international interest by offering more investor-friendly terms compared to the previous EPSA IV framework.
Chairman of the National Oil Corporation (NOC), Massoud Suleman, addressed potential investors at an event in London on Monday, stating that Libya is determined to boost foreign participation in its oil sector.
According to the NOC, Libya currently produces around 1.4 million barrels per day (bpd), roughly 200,000 bpd below the levels achieved before the country’s descent into civil conflict.
The nation now aims to increase production to 2 million bpd, a target that requires substantial financial input and infrastructure development.
Oil Minister Khalifa Abdulsadek highlighted that the areas on offer include some of Libya’s most resource-rich hydrocarbon basins, such as Sirte, Murzuq, and Ghadamis, along with offshore zones in the Mediterranean.
In a statement made to Reuters in January, Abdulsadek estimated that between $3 billion and $4 billion in investment would be required to push output to 1.6 million bpd.
Libya’s energy sector has suffered over a decade of setbacks due to political instability, ongoing conflict, and armed factional disputes, which have led to frequent production halts and the temporary closure of key oilfields.
With this new bidding round, the Libyan government hopes to restore investor confidence and lay the groundwork for a sustained increase in production.
