In a significant move to enhance its oil production capabilities, Libya's government has sealed a 25-year pact with leading Western oil producers TotalEnergies SE and ConocoPhillips via the Waha Oil Company, according to statements from government officials. This agreement symbolizes a renewed commitment to energy sector expansion and aims to attract robust foreign investment into the country’s upstream oil industry.
Prime Minister Abdulhamid al-Dbeibah emphasized the strategic importance of the deal, noting that it secures over $20 billion in foreign-backed funding. He indicated that the project has the potential to generate net revenues in excess of $376 billion over its operational period, making it one of the largest development initiatives in Libya’s oil sector in recent years.
The development endeavor is designed to increase national oil production capacity by as much as 850,000 barrels per day, a substantial rise compared to current levels. Sources close to Waha Oil reported that existing daily production typically fluctuates between 340,000 and 400,000 barrels, a range influenced predominantly by the prevailing security conditions and the reliability of oil infrastructure throughout the country.
Waha Oil operates as a subsidiary under the state-controlled National Oil Corporation (NOC) of Libya and manages five principal oil and gas fields along with several auxiliary producing satellite sites. These fields are interconnected through pipeline systems that transport crude oil to the Sidra oil terminal, while separate pipeline networks convey natural gas to local processing facilities.
In addition to the main agreement with TotalEnergies and ConocoPhillips, Libya has signed a memorandum of understanding with Chevron Corporation, strengthening its ties with international energy companies. Officials also verified a cooperation agreement formed with Egypt's oil ministry during the recent Tripoli energy summit. Prime Minister al-Dbeibah characterized these accords as indicative of Libya's renewed openness to engaging international capital and fostering partnerships with influential players in the global energy arena.
Adding to the momentum, Masoud Suleman, the acting chairman of the National Oil Corporation, announced plans to unveil the outcomes of Libya’s first oil exploration bid round in more than 17 years, scheduled for February 11. This milestone event is anticipated to play a crucial role in identifying new hydrocarbon resources and attracting further upstream investment.
Libya remains one of Africa's largest oil producers and holds membership in the Organization of the Petroleum Exporting Countries (OPEC). However, its oil output has historically been subject to fluctuations, largely driven by internal political disputes and security challenges that intermittently disrupt production stability.