Full Breakdown
Libya Signs Major Oil Development Agreement with TotalEnergies and ConocoPhillips
1/24/2026, 8:32:38 PM
Overview of the Agreement
On January 24, 2026, Libya signed a significant 25-year oil development agreement with France's TotalEnergies and U.S.-based ConocoPhillips. This deal, facilitated through the Waha Oil Company, involves over $20 billion in foreign-financed investment. Prime Minister Abdulhamid al-Dbeibah announced that the agreement aims to enhance Libya's oil production capacity by up to 850,000 barrels per day (bpd) and is projected to generate net revenues exceeding $376 billion.
Key Details of the Deal
Waha Oil Company, a subsidiary of Libya's state-run National Oil Corporation (NOC), operates five main oil and gas fields, along with several subfields. These fields are interconnected by pipeline networks that transport crude oil to the Sidra oil terminal and gas to processing facilities. Under normal operations, Waha's daily output typically ranges between 340,000 and 400,000 bpd. In addition to the agreement with TotalEnergies and ConocoPhillips, Libya also signed a memorandum of understanding with Chevron and a cooperation agreement with Egypt's oil ministry during the Libya Energy and Economy Summit held in Tripoli.
Background and Context
Libya, a member of the Organization of the Petroleum Exporting Countries (OPEC), is one of Africa's largest oil producers. However, its oil production has faced significant disruptions over the past decade, primarily due to ongoing conflicts and political instability following the 2011 overthrow of Muammar Gaddafi. The country has been divided between rival authorities in the east and west since 2014, complicating foreign investment in its oil sector.
Official Statements & Responses
Prime Minister Abdulhamid al-Dbeibah emphasized that the agreements signify a strengthening of Libya's relationships with key international partners in the energy sector. He stated, "These agreements reflect the strengthening of Libya's relations with its largest and most influential international partners in the global energy sector." Additionally, Masoud Suleman, acting chairman of the NOC, announced that the results of Libya's first oil exploration bidding round in over 17 years would be revealed on February 11.
Criticism & Opposition
Despite the optimism surrounding the new agreements, foreign investors remain cautious about committing to Libya's oil sector due to the ongoing instability and disputes among armed factions over oil revenues. These conflicts have historically led to oilfield shutdowns, raising concerns about the sustainability of production increases promised by the new deal.
What's Next
The upcoming announcement of the results from Libya's first oil exploration bidding round in over 17 years on February 11 is anticipated to further influence the country's oil landscape and investment climate. The outcomes may either bolster investor confidence or highlight ongoing challenges within Libya's oil sector.
