Libya’s National Oil Corporation (NOC) has announced that energy giants BP and Shell have signed new agreements to evaluate hydrocarbon exploration and development opportunities across three key Libyan oilfields.
The move signals a cautious but significant return of major foreign investment in Libya’s oil sector, which has faced years of instability and production disruptions due to armed conflicts and political rivalries over oil revenues.
As a result, frequent shutdowns have plagued the operations of Africa’s second-largest oil producer.
Since the fall of Muammar Gaddafi in 2011, Libya has struggled to maintain consistent oil production, deterring international energy companies.
However, last year saw a resurgence in foreign interest, with companies like Eni, OMV, BP, and Repsol resuming exploration activities after a decade-long hiatus.
As part of the renewed momentum, BP plans to reopen its Tripoli office by the final quarter of 2025.
The company also signed a memorandum of understanding (MoU) with NOC to assess hydrocarbon potential in the Messla and Sarir fields, as well as adjacent exploration areas.
In addition to conventional reserves, BP will study Libya’s unconventional oil and gas resources, which involve advanced extraction techniques such as hydraulic fracturing to unlock hydrocarbons trapped in shale and other tight rock formations.
BP initially entered Libya in 2007 through an exploration and production sharing agreement with NOC. That agreement, which covered both onshore and offshore blocks, was later suspended under force majeure due to security concerns.
In 2022, Eni acquired a 42.5% stake in the agreement and became the operator, while BP retained an equal share and the Libyan Investment Authority held the remaining 15%.
The lifting of the force majeure in 2023 paved the way for the resumption of onshore exploration.
Separately, NOC confirmed it has signed an agreement with Shell to conduct a full technical and economic feasibility study for the development of the Atshan oilfield and other NOC-operated fields.
These developments underscore renewed optimism in Libya’s energy sector and its potential to regain a more stable footing in global oil markets.
