Libya has announced plans to hold its first oil exploration bidding round in nearly two decades, a major step towards reviving its energy sector. The announcement was made on Monday by Masoud Suleman, Acting Chairman of the National Oil Corporation (NOC), during a live broadcast.
This marks the first time since 2007 that the North African country will be inviting oil companies to explore new fields. Libya, which is Africa’s second-largest oil producer and a member of the Organisation of the Petroleum Exporting Countries (OPEC), hopes the move will boost its production capacity and attract fresh investments.
The country has been struggling to maintain stability since the fall of former leader Muammar Gaddafi in 2011. The political unrest and ongoing disputes between rival armed groups have made foreign investors cautious. These internal conflicts have repeatedly affected the oil industry, often resulting in the shutdown of oilfields and ports.
In August 2024, Libya lost more than half of its oil production due to such shutdowns. Several export ports were closed, and production only began to recover gradually from early October.
Now, the government hopes the new bidding round will signal a fresh start. It offers companies a chance to explore untapped oil reserves and contribute to Libya’s recovery. Industry watchers believe the outcome of this bidding round will show whether global investors are ready to trust Libya’s oil sector again.
