Chevron makes long-awaited Libya return, Repsol and Eni also win blocks

Libya's National Oil Corp. has awarded oil and gas exploration licenses to Chevron, Eni, Repsol and others, the state oil firm confirmed Feb. 11 while announcing the results of its first post-revolution bid round, marking the US supermajor's return to Libya after a 16-year absence.

In a statement, the NOC said it had awarded exploration blocks to Repsol, Hungary's MOL, a consortium of Eni and QatarEnergy, Chevron and Nigeria's Aiteo.

Billed as the "most significant event in Libya's oil sector in 17 years," the license unveiling in Tripoli on Feb. 11 -- overseen by Prime Minister Abdul Hamid al-Dbeiba -- comes at a time of renewed interest in Libya's oil and gas sector, amid an improvement in the political and security situation.

In a statement, Chevron said it was "designated as the winning bidder for Contract Area 106" in the Sirte Basin.

"Chevron is excited to enter Libya with the award of onshore Contract Area 106, which underscores our focus on North Africa and the Eastern Mediterranean region, and is a good fit in our exploration strategy to grow our portfolio with high-quality acreage and high impact prospects," Kevin McLachlan, vice president of exploration at Chevron, said in the statement, noting Libya's "significant proven oil reserves" and strong production history.

The award of the contract area is subject to the execution of a production sharing agreement, the company added.

Eni said it had won block O1, which it will operate, alongside QatarEnergy. "The block lies in the offshore extension of the prolific Sirte Oil & Gas Province," the company said in a statement.

"It offers notable exploration potential, including wide areas without 3D seismic coverage that could host additional hydrocarbon accumulations. The block also features various hydrocarbon indications, including stranded oil and gas discoveries," the company added. Eni is Libya's biggest foreign operator, at 162,000 boe/d in 2025.

A spokesperson for Spanish energy giant Repsol -- which operates Libya's largest field, the 300,000 b/d Sharara project -- confirmed the company had been awarded two blocks, O7 offshore and C3 onshore.

It will operate both but will be joined in O7 by Turkey's TPAO and Hungary's MOL, while TPAO will be its partner in the onshore C3 license.

"Repsol is excited about the opportunities created by the award of two new exploration blocks in the licensing round in Libya and is confident this will unlock a new phase of growth and reinforce the company's long-term presence in the country," the company said.

The O7 block covers more than 10,300 sq km in water depths exceeding 1,500 meters, located approximately 140 kilometers northwest of Benghazi, MOL said in a Feb. 11 statement.

'Turning point'

NOC chairman Masoud Suleman said the round "represents a major turning point for reviving Libya's oil sector and doubling the country's crude‑oil production. This, in turn, will foster an economic renaissance."

"He further noted that attracting the world's largest oil companies to invest in Libya is a key step in the promising 'Return to Life' project launched by the Government of National Unity and closely overseen by the NOC," Suleman was quoted as saying by the state firm.

The round, launched in March 2025, included 22 oil and gas blocks, split equally between onshore and offshore, and featuring both mature fields in need of redevelopment and untapped discoveries.

Libya is a key supplier of oil to Europe, and has seen its importance rise since the Russian invasion of Ukraine. Its Es Sider crude grade was last assessed by Platts at a $1.30/b discount to Dated Brent on Feb. 11.

The Chevron award follows a memorandum of understanding signed between NOC and the US company in January. Chevron told Platts, part of S&P Global Energy, at the time that the agreement was to "evaluate opportunities in Libya."

The US supermajor quit the North African country in 2010. Its return has followed similar moves by Shell, BP, ExxonMobil and others.

The country has seen crude output rise in the past year. It pumped 1.25 million b/d in January, according to the latest Platts OPEC+ Survey, on its way to the NOC target of 2 million b/d by 2028.

Libya holds Africa's largest proven oil resources, but has been blighted by conflict and instability since the fall of Moammar Qadhafi in 2011.