Libya has taken a major step to reshape its oil sector by signing a 25-year development agreement with global energy giants TotalEnergies and ConocoPhillips. The long-term pact, structured through Waha Oil Company — a subsidiary of the state-owned National Oil Corporation — brings in more than $20 billion in foreign investment and aims to modernise Libya’s upstream infrastructure and expand production capacity significantly.
The deal was announced during the Libya Energy and Economy Summit in Tripoli, in a ceremony that also saw memoranda of understanding signed with other major partners, underlining a broader strategic push to deepen Libya’s energy ties with international firms.
A transformative agreement for production and revenue
Under the terms of the agreement, Libya plans to boost output from the Waha concession and related fields — which currently produce several hundred thousand barrels per day — up toward an additional 850,000 barrels a day over time. This expansion could propel national output closer to its pre-conflict potential and help stabilise Libya’s role as a key oil exporter.
Prime Minister Abdulhamid al-Dbeibah highlighted the economic significance of the pact, estimating that the arrangement could generate hundreds of billions of dollars in net revenue for Libya over its 25-year term. These financial flows are seen as vital for government budgets, infrastructure investment and post-conflict economic recovery.
Strategic partnerships and broader cooperation
In addition to the main deal with TotalEnergies and ConocoPhillips, the summit featured additional cooperation agreements, including engagement with Chevron and collaboration with Egypt’s oil ministry on regional energy projects. These moves reflect Libya’s effort to position itself as an attractive destination for long-term investment, despite a history of political instability and intermittent production disruptions.
Officials also indicated that Libya is moving forward with its first oil exploration licensing round in more than 17 years, with results expected to be announced soon. This bid round is part of a broader strategy to unlock new reserves and attract further foreign capital into exploration and development.
What this means for Libya’s oil sector
Libya holds some of the largest proven oil reserves in Africa, and energy exports dominate its national economy. However, years of political division and armed conflict since 2011 have repeatedly disrupted production and deterred sustained foreign investment.
The new agreement marks a high-profile vote of confidence from major global producers and could encourage further international participation. Modernising ageing infrastructure, rehabilitating mature fields and developing new capacity are expected to improve reliability, reduce operational risk and enhance overall production efficiency.
If successful, the expanded output could improve Libya’s OPEC standing and provide a more stable supply contribution to global markets.
Challenges and opportunity
While the deal offers significant potential, it also comes with challenges. Political cohesion, security conditions around oil infrastructure and consistent regulatory oversight remain key to translating investment commitments into tangible, long-term production growth.
That said, the scale and duration of this partnership suggest a new chapter for Libya’s energy landscape — one in which international expertise, capital and technology play a central role in unlocking the country’s vast hydrocarbon potential.