Libya signs first production-sharing deals in nearly 20 years

Libya’s NOC signed production-sharing contracts with international energy firms including Repsol, MOL Group, and TPAO for deepwater exploration blocks, according to Reuters.reuters
The deals formalize results from Libya’s first licensing round since 2007, which also awarded blocks to Chevron ↘2.22%, Eni ↘1.59%, and QatarEnergy.spglobal
NOC aims to raise oil production from roughly 1.4 million to 2 million barrels per day despite ongoing political fragmentation between eastern and western administrations.reuters

MOL Group, Repsol, and TPAO Sign Deepwater Libya Exploration Deal

Hungarian energy company MOL Group, Spain’s Repsol, and Turkey’s state oil company TPAO have signed a production sharing agreement for the deepwater O7 block in Libya’s Mediterranean waters, formalizing a partnership that marks Libya’s return to international upstream investment after nearly two decades.

The Deal

The agreement, announced on Monday, gives Repsol operatorship and a 40% interest, with TPAO holding 40% and MOL Group taking 20%. Block O7 covers more than 10,300 square kilometers in water depths exceeding 1,500 meters, located approximately 140 kilometers northwest of Benghazi. The minimum work commitment includes acquisition of 1,500 km of 2D seismic data and 2,300 square kilometers of 3D seismic data, along with the drilling of one exploration well.chemxplore

MOL Group said the project will contribute to the “revitalization of Libya’s oil and gas industry” and represents “a strategic milestone for Central Eastern Europe’s energy security”.ocean-energyresources

Libya’s First Licensing Round in Nearly Two Decades

The consortium was awarded exploration rights for the O7 block earlier this year as part of Libya’s first licensing round since 2007, launched by the National Oil Corporation in 2025. The NOC also granted blocks to Chevron, Eni, QatarEnergy, and Nigeria’s Aiteo during the same round.worldoil

According to Reuters, the NOC has now finalized production-sharing contracts with various international firms from that round, with the aim of boosting Libya’s oil production capacity from approximately 1.4 million barrels per day to 2 million bpd. NOC chairman Massoud Suleman confirmed the agreements on Monday.reuters

Political and Strategic Context

Libya’s upstream sector has been largely dormant for foreign investment since political instability engulfed the country following its 2011 revolution. The licensing round proceeded despite ongoing political fragmentation between competing administrations in the eastern and western regions. The NOC introduced a new production sharing agreement model in 2025, replacing the previous EPSA-IV fiscal framework with terms designed to attract international capital by offering simultaneous cost recovery and profit sharing from the start of production.linkedin

MOL Group said its entry into Libya followed the signing of a strategic cooperation agreement with NOC aimed at expanding collaboration across exploration, crude trading, and oilfield services.worldoil