Two British oil majors, BP and Shell, have signed separate agreements with Libya’s National Oil Corporation (NOC) to carry out hydrocarbon exploration and development studies at three oil fields, according to a statement by the NOC on Monday.
At a signing ceremony held in London, Libya formally expanded its partnerships with both companies, marking a renewed phase of cooperation after years of disruption in oil activities.
BP signed a memorandum of understanding (MoU) with NOC to conduct studies assessing the potential for exploration and development of the Messla and Sarir fields, as well as surrounding exploration zones.
In a separate meeting, Shell also signed an MoU with NOC to evaluate hydrocarbon prospects and conduct a comprehensive technical and economic feasibility study for the Al-Atshan field and other fields fully owned by the Libyan oil company.
NOC clarified that this agreement does not extend to other areas where third parties, beyond NOC and Shell, hold rights.
Libya’s oil sector recovers from conflict
Since the overthrow of Muammar Gaddafi in 2011, Libya’s oil sector has faced prolonged instability.
Political and armed conflicts, particularly over oil revenue distribution, led to repeated shutdowns of major oil fields.
To revive foreign investment and reboot its petroleum industry, NOC in March 2025 announced plans to launch the country’s first oil bidding round in more than 17 years.
The tender process began this July, offering 22 offshore and onshore blocks to international companies. Results are expected in November.
“Virtually all international oil and gas firms are competing in the licensing round,” said Masoud Suleman, Chairman of NOC, in an interview with Bloomberg.
Notable big players in the exercise include ExxonMobil, Chevron, TotalEnergies, and Eni.
Return of BP and other players amid sector optimism
Recent events indicate that NOC’s reforms are already yielding results.
Alongside over 30 companies participating in the bid round, several key international oil firms are resuming operations in Libya after a decade-long absence.
Companies like Eni, OMV, Repsol, and Weatherford have started returning to the Libyan energy landscape.
NOC confirmed that BP will reopen its Tripoli office in the last quarter of 2025, signaling renewed long-term interest.
Libya holds Africa’s largest proven oil reserves (estimated at around 40% of the continent’s total) much of which remains untapped.
Despite ongoing challenges, the country remains a key member of OPEC, although it is occasionally exempt from OPEC+ production quotas due to internal constraints.
Currently, Libya’s oil output stands at 1.385 million barrels per day (bpd), placing it just behind Nigeria in the African production rankings.
When Masoud Suleman assumed the role of NOC Chairman in February 2025, he set an ambitious target to raise production to 2 million bpd within three years.
