Libya’s National Oil Corporation (NOC) has signed an agreement with U.S. oil major Chevron to conduct a technical assessment of offshore block NC146, signaling a renewed push into offshore oil exploration.
Announced on March 26, the deal focuses on geological and technical studies to evaluate the block’s hydrocarbon potential. NOC emphasized that no drilling or investment decisions have been made at this stage, and the study will guide future exploration activities.
“The block remains largely unexplored, but early geological indicators are encouraging,” NOC Chairman Masoud Suleman said. He added that Chevron will contribute offshore expertise and deploy technologies aligned with international standards, underlining the technical complexity of deepwater exploration.
The agreement is part of a broader strategy by Libya to revitalize its oil sector, particularly offshore operations. The NOC has indicated plans to develop new offshore areas and attract international partners as it prepares a new licensing round, reflecting a strategic pivot toward offshore development as a new growth driver.
Libya launched its first deepwater exploration well in June 2025, marking a technical milestone in a segment that has remained largely underdeveloped. Officials say international partnerships are critical, given the financial and technical challenges associated with offshore operations.
“The Chevron agreement is a key step in assessing potential reserves and shaping the future exploration roadmap,” said a regional energy analyst who requested anonymity. “It allows Libya to leverage international experience while minimizing upfront investment risk.”
Offshore exploration as a priority
Libya’s oil production currently stands at around 1.4 million barrels per day. Authorities aim to increase output to roughly 1.6 million barrels per day by the end of 2026 to offset declining production in some onshore fields. As part of this push, Libya signed a 25-year agreement with TotalEnergies and ConocoPhillips in January 2026 to further develop offshore resources.
Offshore exploration has increasingly become central to Libya’s energy strategy. The NOC believes that expanding offshore operations will help diversify production sources, enhance reserves, and maintain the country’s position as a key oil exporter in North Africa.
The NC146 block, located off Libya’s coast, remains largely unexplored, making technical assessment essential before committing to costly drilling campaigns. The studies are expected to evaluate geological formations, reservoir potential, and optimal development approaches.
Experts note that successful offshore projects could provide Libya with significant medium- and long-term revenue streams, supporting national budgets and economic stability amid political uncertainties.
“The assessment phase is critical,” the analyst added. “It informs whether the block is commercially viable and helps structure partnerships that bring both technical capability and financial backing.”
Libya has faced challenges in sustaining onshore oil production due to aging fields, infrastructure issues, and intermittent conflict. Authorities see offshore development as a way to stabilize and grow production while attracting global investment.
With Chevron’s involvement, the NOC hopes to benchmark operations against international best practices, reduce technical risk, and create a framework for future exploration activities in other offshore areas.
The results of the NC146 study will determine the next phase of development, including whether to proceed with drilling, infrastructure deployment, or new licensing rounds. Officials stress that the process remains preliminary, focusing on information gathering rather than immediate production increases.
As Libya positions itself for a revival in offshore exploration, partnerships with international majors such as Chevron, TotalEnergies, and ConocoPhillips are expected to play a pivotal role in shaping the country’s oil sector in the coming decade.
