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Oil company talks shape Libya licensing round

28 September 2026

 

Conversations with London-headquartered international oil companies (IOCs) are playing a key role in shaping plans for Libya’s next licensing round.

Representatives from Shell and BP travelled to Libya earlier this month as part of a Libyan British Business Council (LBBC) delegation.

During the trip, the oil companies’ representatives met with officials from Libya’s National Oil Corporation (NOC).

Peter Millett, chair of the LBBC and a former British ambassador to Libya, told MEED: “NOC is considering its next licensing round and an important part of that process is talking to IOCs like BP and Shell about what kind of terms would make blocks appealing to them.

“They are asking these oil companies what they can do differently in order to get more investment.”

Libya’s NOC chairman is Masoud Suleman, who was formally appointed in October last year after serving as acting chairman since January 2025.

Shortly after he became acting chairman, the NOC announced the results of its most recent licensing round, which was launched in March 2025 and was the country’s first in 17 years.

A total of five blocks out of 22 available were ultimately awarded in the 2025 licensing round.

One of the blocks, known as Block S4, was awarded to US-based Chevron, and the production-sharing agreement (PSA) for the block was signed in August.

Investment drive

Millett said Libya is seeking large investments from oil companies in order to boost national production.

“The way that Masoud Suleman is running NOC is impressive and technocratic,” he said. “One of his focuses is making his organisation into a partner that IOCs want to work with.”

“NOC has the ambition to produce more oil and export more oil, but they need investment in order to do this.

“They received some money from the central bank for a budget, but it is just a fraction of what they need.

“There’s a huge requirement to invest in infrastructure, such as processing facilities and pipelines, so they’re looking to outside companies to bring them investment and technology.”

Amid the US and Israel’s ongoing conflict with Iran and the ongoing war between Russia and Ukraine, oil assets in North Africa have become increasingly appealing to IOCs.

Disruptions to oil and gas exports through the Strait of Hormuz have severely affected a range of countries, including Qatar, the UAE, Saudi Arabia, Iraq and Kuwait.

Millett believes Libya’s proximity to consumer markets could help it secure investment to develop its oil and gas sector.

“Oil companies appear to be becoming increasingly willing to provide this investment in the current climate, because it is relatively easy to transport Libyan crude to customers,” he said.

“The only strait that you might need to go through is the Strait of Gibraltar, and this is easy compared to the problems that countries like Iraq and Kuwait are having shipping their crude through the Strait of Hormuz at the moment.”

Security challenges

While Libya’s location offers significant benefits in terms of ease of exports, operating in the country comes with security challenges.

Over recent weeks, both the Mellitah oil and gas complex and the Zawiya refinery in the west of the country have been disrupted by the actions of armed groups.

On top of this, a key pipeline was shut down by militants, temporarily cutting national production by 130,000 barrels a day.

While Libya has significant potential to expand its oil and gas sector, IOCs will likely watch for signs of deteriorating security before committing to large investment projects.

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Wil Crisp

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