Thirty-seven companies have submitted bids for Libya’s first energy tender in decades, reflecting the OPEC member’s efforts to boost its oil production in the coming years. Bloomberg reported that the list of bidders includes several major global energy companies, including American companies Chevron and ExxonMobil, as well as France’s TotalEnergies and Italy’s Eni.
Masoud Suleiman, chairman of the state-owned National Oil Corporation, explained that contracts with the winning companies are expected to be signed by the end of 2025, noting that nearly all well-known international companies have submitted bids for exploration rights in 22 onshore and offshore oil blocks. He added that the selected companies will bear the costs of conducting seismic surveys and other exploration work, with these costs being recoverable if commercially viable hydrocarbon sites are discovered.
Libya aims to increase its daily oil production to 2 million barrels by 2030, compared to approximately 1.4 million barrels per day currently. The launch of this tender comes as part of a broader plan adopted by the National Oil Corporation last March, which includes offering 22 onshore and offshore exploration blocks, with the aim of increasing production to between 2 and 3 million barrels per day.
It is worth noting that Libya produced approximately 2 million barrels per day before 2011. Since then, the Libyan oil sector has been severely affected by political divisions and armed conflicts, which have impacted production and investment levels.
The oil sector is Libya’s primary source of income, as the country possesses the largest proven oil reserves in Africa. With the relative stability of the security situation in some production areas, Tripoli is seeking to attract investments from international energy companies to bolster its struggling economy. However, observers believe that entering the Libyan market requires a high appetite for risk, given the ongoing security and political challenges that could affect exploration and production operations in the future.
