Libya sealed a 25-year oil development agreement on January 24 with TotalEnergies and ConocoPhillips, marking the country’s largest foreign investment deal since the 2011 overthrow of Muammar Gaddafi.
The agreement channels more than $20 billion in foreign capital through Waha Oil Company, a subsidiary of Libya’s state-run National Oil Corporation. The deal targets production capacity of 850,000 barrels per day, more than double Waha’s current output of 340,000 to 400,000 barrels per day.
Prime Minister Abdulhamid al-Dbeibah projects the agreement will generate net revenues exceeding $376 billion over its duration. The deal requires no state budget allocation, relying entirely on external financing.
Officials signed the agreement during the Libya Energy and Economic Summit in Tripoli. The government also finalized a memorandum of understanding with Chevron and a cooperation agreement with Egypt’s oil ministry at the same event.
Massad Boulos, senior adviser to US President Donald Trump for Arab and Middle East affairs, told summit attendees that the deals demonstrate “the United States and its world-class companies are betting on Libya’s future.”
The North African nation plans to announce results from its first oil exploration licensing round in more than 17 years on February 11. More than 50 companies qualified for the bidding round, including ExxonMobil, Chevron, Shell, BP, TotalEnergies and Eni, according to government officials.
Libya holds more than 50% of Africa’s oil reserves and depends on oil and gas for approximately 95% of its economy, Oil Minister Khalifa Abdulsadek said at the summit.
Foreign investors have historically avoided Libya due to political instability following Gaddafi’s removal. Armed factions competing for oil revenues have repeatedly forced oilfield closures. In 2023, the National Oil Corporation declared force majeure at Sharara, the country’s largest oilfield, temporarily halting production during civil unrest.
TotalEnergies and ConocoPhillips each maintain a 20.4% stake in Waha Oil Company, which operates five main oil and gas fields connected by pipeline networks to the Sidra oil terminal.
A key OPEC member, Libya plans to launch a second upstream licensing round following strong international interest in the current bidding process.
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