Long-term Foreign Investments Reshape Libya's Oil Sector with $20 Billion Agreement

Tripoli | EcoPulse24

The Libyan Government of National Unity has announced the signing of a 25-year oil sector development agreement with France's TotalEnergies and US-based ConocoPhillips, involving foreign investments exceeding $20 billion. This initiative aims to enhance production capacity and support state revenues.

According to Prime Minister Abdul Hamid Dbeibeh, the agreement, signed through Waha Oil Company (a subsidiary of the National Oil Corporation), seeks to increase output to 850,000 barrels per day, with projected net state revenues exceeding $376 billion over the contract period.

Dbeibeh also indicated that Libya intends to sign a memorandum of understanding with US oil major Chevron and a cooperation agreement with Egypt's Ministry of Petroleum, as part of efforts to broaden international partnerships and foster regional energy integration.

Libya remains one of Africa's largest oil producers, but its production has faced repeated disruptions since 2014, impacting the operational and financial stability of the sector.

EcoPulse24 Analysis:
This agreement signals a transition from crisis management to long-term operational partnerships, enhancing supply reliability and repositioning Libya on the global energy map. Expanding the base of international partners reduces disruption risks and improves investment efficiency, while the long-term horizon allows for infrastructure upgrades and operational sustainability. With supportive institutional and executive frameworks, this could positively impact national economic stability.