Libya has opened its doors to international investors by holding its first bidding round for oil exploration and development in more than 17 years.
The nation is selling 22 exploration blocks, evenly distributed across onshore and offshore regions, in an effort to boost oil production and revitalize its energy sector.
In an effort to draw in more foreign interest by providing more investor-friendly terms than the previous EPSA IV framework, the bidding round, which started on March 3, will use a Production Sharing Agreement (PSA) model.
Massoud Suleman, Chairman of the National Oil Corporation (NOC), addressed potential investors at an event in London on Monday, emphasising that Libya is committed to increasing foreign investment in its oil sector.
According to the NOC, Libya presently produces around 1.4 million barrels per day (bpd), which is approximately 200,000 bpd lower than levels attained prior to the country’s slide into civil conflict.
The country currently intends to expand production to 2 million bpd, a goal that will necessitate significant financial investment and infrastructural expansion.
Oil Minister Khalifa Abdulsadek highlighted that the areas on offer include some of Libya’s most resource-rich hydrocarbon basins, such as Sirte, Murzuq, and Ghadamis, along with offshore zones in the Mediterranean.
Libya’s energy sector has been hit hard for over a decade by political instability, ongoing conflict, and armed factional rivalries, resulting in periodic production halts and the temporary shutdown of critical oilfields.
With this new bidding round, the Libyan government intends to restore investor trust and lay the framework for a long-term boost in output.
