Chevron Signs Production-Sharing Deal for Major Oil Exploration Block in Libya’s Sirte Basin
Chevron has signed a production-sharing agreement (PSA) with Libya’s National Oil Corporation (NOC), advancing the US energy major’s return to the country’s upstream oil and gas sector.
The agreement covers Contract Area 106, an onshore exploration block in the Sirte Basin that Chevron won in Libya’s 2025 licensing round. The block was awarded to the company in February 2026.
The PSA provides the contractual framework for Chevron to begin exploration and evaluate the hydrocarbon potential of the acreage.
The agreement is part of Libya’s wider effort to attract international investment and develop underexplored resources.
NOC Chairman Masoud Suleiman said the agreement represents an important step towards exploring and developing Libya’s hydrocarbon resources while strengthening cooperation with international energy companies.
For Chevron, the deal supports its strategy of expanding its exploration portfolio across North Africa and the Eastern Mediterranean.
The company already has operations or exploration interests in several African markets, including Nigeria, Angola, Equatorial Guinea, Namibia and Egypt.
The agreement comes as Libya seeks to revive international exploration following its first competitive oil and gas licensing round in nearly two decades.
The country is targeting an increase in oil production capacity to 2 million barrels per day, from around 1.4–1.5 million barrels per day currently.
Chevron’s entry into the Sirte Basin highlights renewed international interest in Libya’s substantial hydrocarbon resources and could pave the way for further exploration investment as the country works to expand production.
