Libya is planning a second oil and gas licensing round after strong interest from international companies in its current tender, the country’s oil minister said, underlining efforts to revive investment in a sector critical to the North African producer’s economy.
Oil and Gas Minister Khalifa Abdulsadek said the second round was “almost 90 percent certain,” citing sustained interest from multinational firms, Libyan media reported during the Libya Energy & Economic Summit 2026 held in Tripoli from Jan. 24 to Jan. 26.
Speaking at the summit, Abdulsadek said the level of engagement in the ongoing licensing process showed that international companies remained keen on Libya’s oil sector despite years of political instability and operational disruptions.
“We seek to keep this momentum going on a regular basis,” Abdulsadek said, according to remarks reported by The Libya Observer. “This is a necessary step for an economy that depends 95 percent on oil and gas. This dependence makes it essential to sustain the sector through a steady and structured process.”
Libya has yet to announce a timetable or details for the potential second round, which remains at an early planning stage. Authorities are still preparing to publish the results of the current licensing round, which Libyan Prime Minister Abdulhamid al-Dbeibah said are expected in February 2026.
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The current tender marks Libya’s first oil licensing round in nearly two decades and is seen as a key test of investor confidence in the country’s energy sector following years of civil conflict, blockades and infrastructure damage.
Renewed push since 2025
The prospect of a second licensing round comes amid a broader push by Libyan authorities to revitalise oil and gas investment since 2025. Tripoli reopened bidding for both onshore and offshore blocks last year, ending an 18-year pause in licensing rounds, according to AFP.
Libya has also moved to strengthen partnerships with international energy companies. On Jan. 24, state authorities signed a 25-year oil cooperation agreement with TotalEnergies and ConocoPhillips on the sidelines of the Tripoli summit, a move officials said would support long-term production and technology transfer.
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The government hopes that renewed exploration and development activity will help stabilise output and raise production capacity, which has been repeatedly disrupted by political disputes, armed shutdowns and underinvestment.
Libya holds Africa’s largest proven crude oil reserves, estimated at around 48.4 billion barrels, according to official data. Current production averages about 1.4 million barrels per day, though output has fluctuated sharply over the past decade due to internal instability.
Authorities have set a target of increasing national oil production to around 1.6 million barrels per day by the end of 2026, banking on foreign investment and the rehabilitation of ageing infrastructure to reach that goal.
Encouraging exploration activity
Through the state-owned National Oil Corporation (NOC), Libya has intensified efforts to encourage multinational companies to resume exploration and drilling activities that were halted for years.
Regional players have also shown renewed interest. Algeria’s state energy company Sonatrach recently announced the resumption of hydrocarbon exploration drilling in Libya after a hiatus of more than a decade, according to Ecofin Agency.
Energy analysts say sustained political stability and transparent licensing processes will be crucial if Libya is to translate investor interest into long-term production gains. While the reopening of licensing rounds signals renewed ambition, risks linked to security, governance and contract enforcement remain key concerns for international operators.
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For now, officials say they are focused on completing the current licensing round and maintaining investor momentum, with the proposed second tender seen as a sign of growing confidence in Libya’s energy recovery plans.
