The deal, signed through Waha Oil Company, a subsidiary of Libya’s state-run National Oil Corporation (NOC), involves TotalEnergies of France and ConocoPhillips of the US, which will bring both capital and technical expertise to expand production and modernize aging infrastructure.
The agreement could boost Libya’s output by up to 850,000 barrels per day (bpd).
Prime Minister Abdulhamid al-Dbeibah said the Waha deal alone could generate net revenues exceeding $376 billion, while also strengthening Libya’s ties with global energy majors.
Could Libya overtake Nigeria?
If the Waha deal succeeds in adding 850,000 bpd, Libya could theoretically rival Nigeria’s production, especially when combined with restored operations at other NOC-run fields and expanded foreign-backed projects.
Reuters reports that the Libyan government also signed a memorandum of understanding with US oil major Chevron and a cooperation agreement with Egypt’s Ministry of Petroleum during the Libya Energy and Economy Summit in Tripoli.
Prime Minister Abdulhamid al-Dbeibah described the agreements as reflecting “the strengthening of Libya’s relations with its largest and most influential international partners in the global energy sector”
Challenges remain
In contrast, Nigeria benefits from a more stable regulatory framework and deepwater offshore fields less prone to disruption. Security risks, ongoing rivalries between eastern and western authorities, and global oil price fluctuations could all limit Libya’s ability to maintain consistent output at levels high enough to surpass Nigeria.
While the $20 billion, 25-year deal represents a historic opportunity to restore Libya’s oil prominence, experts caution that structural, political, and operational challenges will determine whether the North African nation can truly claim the title of Africa’s top oil producer.
