Libya reopens oil, gas fields to foreign investors after 17 years

Libya is opening its oil and gas fields to foreign investors for the first time in more than 17 years, launching a licensing round that includes 22 onshore and offshore blocks.

Major international energy companies, including BP, Chevron, ExxonMobil, TotalEnergies, Shell, and Eni, have qualified to compete for exploration and development licenses, with awards expected early next year, The National reports.

The government has revised its production sharing framework to offer more attractive terms to investors and anticipates several hundred million dollars in new upstream investment.

While the move supports Libya’s broader economic recovery, ongoing political divisions and security risks continue to weigh on investor confidence. 

Libya’s oil company halts production as crisis gets worse

As the political crisis in Libya deepens, the country’s National Oil Co. halted production at its petroleum fields and cut off shipments from its ports, rattling regional oil markets.

The NOC declared a “force majeure” to inform customers that orders could not be fulfilled because of unforeseen circumstances.

The cutoff derives from the continuing conflict between Libya’s two rival political factions over control of the central bank and oil revenue.

Oil prices rose on Monday, recovering some losses from late last week, amid the halt in Libyan exports and concerns about the coming decision on OPEC+ production levels.

The political crisis involves a struggle for power between the eastern government, led by commander Khalifa Haftar’s Libyan National Army, and the internationally recognized western government in Tripoli, led by Prime Minister Abdulhamid Dbeibeh.

The NOC reported a 63% drop in oil production last week due to the shutdown, which began Aug. 26. Output was estimated at 591,000 barrels per day, down from 1.2 million barrels in late July.