KEY POINTS
- Tripoli aims to wrap up its first oil and gas licensing round since 2008, drawing strong interest despite Libya’s political divisions and security risks.
- Companies are not only preparing bids but seeking bilateral deals with the state-owned National Oil Corp. to fast-track entry into the country.
- Libya wants partners capable of stabilising and lifting production after years of interruptions caused by conflict and competing centres of power.
Tripoli is preparing to conclude its first upstream licensing round in 18 years, with an unexpectedly large group of foreign companies lining up to participate even as the country’s political landscape remains deeply fractured.
After months of delay, authorities hope to finalise the bid process in February, marking Libya’s most significant attempt in years to re-energise its hydrocarbons sector.
The attraction is notable given Libya’s persistent instability. Two rival governments continue to claim legitimacy, foreign powers exert influence across competing regions, and armed militias hold sway in several key oil-producing areas.
Yet, firms from across the global upstream industry have prequalified for the licensing round, apparently willing to discount the persistent above-ground risks that have long deterred investment.
Tripoli Seeks Partners Capable of Lifting Output
At the heart of the process is a renewed determination by Tripoli to select bidders who can deliver tangible production gains. Officials want partners that can not only win acreage but demonstrate the technical strength and financial endurance needed to boost and sustain Libya’s oil and gas output after years of disruption.
The interest extends beyond the auction itself. Several companies have also opened discussions aimed at securing bilateral arrangements with the country’s state-owned producer, the National Oil Corporation, seeking faster or more direct routes to establishing a presence. That marks a departure from Libya’s last auction in 2008, when the focus was almost entirely on formal, competitive tendering.
For Tripoli, the mix of established majors, independents and emerging players offers both an opportunity and a challenge. Libya remains one of North Africa’s most resource-rich provinces, but continued political division and repeated shutdowns at export terminals have made long-term planning difficult. A successful licensing exercise would signal to global markets that Libya is serious about stabilising its output at a time when oil-producing nations are increasingly under pressure to secure investment.
Energy analysts note that the renewed appetite partly reflects tighter opportunities elsewhere and the persistent draw of Libya’s large, low-cost reserves. But even the most optimistic players acknowledge that operating in the country demands a tolerance for volatility and a long view of returns.
As February approaches, Tripoli is balancing the desire to attract high-quality partners with the reality of a fragile security environment. If it succeeds in concluding the round and moving early projects forward, it may mark the beginning of a new phase for a sector that has spent more than a decade in stop-start mode.
