Libya’s state-owned National Oil Corporation (NOC) has announced U.S. Oil & Gas major Chevron (NYSE:CVX) among the winners of its first oil and gas licensing round in nearly two decades, signaling a major push to revive the country’s hydrocarbon sector. The bidding round also awarded exploration and production rights to several foreign companies, including Italy’s Eni S.p.A. (NYSE:E), Spain’s Repsol S.A. (OTCQX:REPYY), QatarEnergy and Nigeria’s Aiteo.
Chevron secured an onshore Sirte S4 (also referred to as Contract Area 106) exploration license, reflecting a strategic reentry into Libya’s oil sector. Chevron’s return aligns with its strategy to focus on high-impact exploration in Africa, following its exit in 2010 following unsuccessful efforts.
Onshore Area 106 in Libya’s Sirte Basin is a high-potential, active exploration zone that recently saw a significant oil and gas discovery in late 2025 by Austria’s OMV AG (OTCPK:OMVJF). Located in the heart of Libya’s primary hydrocarbon province, this block covers approximately 7,000 square kilometers and is considered a key area for Libya’s goalie to boost production to 2 million barrels per day by 2028.
Eni and QatarEnergy were awarded offshore Area 01 in the Mediterranean’s gas-rich Cyrenaica zone, reinforcing a strategic partnership in the region, while Repsol Consortium, led by Spain’s Repsol (including Hungary’s MOL and Turkey’s state-owned TPOC) won Offshore Area 07.
Meanwhile, Nigeria’s Aiteo secured the Murzuq M1 license in the southern basin, marking a rare entry for an African independent in the country’s upstream sector. Libya holds over 48 billion barrels of oil, often high-quality, light-sweet crude, and significant gas resources.
Western oil majors are making a comeback to Libya thanks to the country’s massive, high-quality hydrocarbon reserves–the largest in Africa–coupled with an improvement in security following the 2020 ceasefire. Driven by the need to secure supplies and counter Russian influence in the Mediterranean, the majors have been flocking to the country as they try to stake their claims despite ongoing instability and dangerous government rivalry.
By Alex Kimani for Oilprice.com
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