Libya’s Energy Sector Comeback: Majors Commit Over $20bn in New Deal.

Executive Summary

Libya’s oil and gas sector has achieved a "formidable bounce back," marked by record production levels and the return of global energy giants including TotalEnergies, ConocoPhillips, Chevron, and Eni. The African Energy Chamber (AEC) has hailed this surge in investment as a historic turnaround for the nation, driven by renewed operational stability and competitive fiscal terms.

The $20 Billion Waha Deal

The centrepiece of this recovery is a landmark 25-year development agreement signed between Libya’s state-run Waha Oil Company, TotalEnergies, and ConocoPhillips.

• Investment: Over $20 billion in externally financed investment.

• Production Target: Capacity at the Waha concessions is set to increase by up to 850,000 barrels per day (bpd) (rising from current levels of 340,000–400,000 bpd).

• Revenue Impact: The project is projected to generate net revenues exceeding $376 billion over the contract period.

Record-Breaking Production & Revenues

Official government figures confirm that Libya is currently enjoying its highest production rates in over a decade.

• 2025 Average: Crude production averaged 1.375 million bpd (highest since 2013).

• Current Output: By early 2026, total production exceeded 1.52 million bpd.

• Financials: Oil revenues hit approximately $22 billion in 2025, a 15% year-on-year increase.

• Future Target: The Ministry of Oil and Gas aims to reach 1.6 million bpd by the end of 2026.

• Key Fields: Recovery was driven by reactivations at the Iravn, Mutahandush, al-Khayr, Hamada 47, and Sinawan fields.

Strategic Gas Expansion (Eni)

Italian major Eni is leading a massive expansion in Libya's gas sector to support both domestic power demand and exports to Europe.

• Structures A&E: An $8 billion offshore development remains on track for completion by end-2027, adding 750 million standard cubic feet per day (mmscfd).

• Bahr Essalam: The gas compression project is scheduled to start in early 2026, adding ~100 mmscfd.

• New Projects: A second gas utilisation project is planned for Q3 2026, delivering an additional 100–120 mmscfd.

New Entrants & Licensing Rounds

Beyond existing partners, new players are re-entering the market, signalling long-term confidence.

• Chevron: Signed a Memorandum of Understanding (MoU) with the NOC for exploration and field development, marking a significant US re-engagement.

• Licensing Round: Results for Libya’s first licensing round in 17 years (offering 22 blocks) are expected in the second week of February 2026. Over 50 companies have submitted pre-qualification applications.

Strategic Context With proven reserves of 48.4 billion barrels of oil (Africa’s largest) and 1.5 trillion cubic meters of gas (Africa’s 3rd largest), Libya is positioning itself as a critical energy supplier for the future.

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