- BP and Shell signed separate agreements with Libya’s National Oil Corporation (NOC) to explore and assess hydrocarbon prospects in key oilfields.
- The agreements show renewed investor interest as Libya works to stabilise its oil sector and boost foreign investment.
BP and Shell have signed agreements with Libya’s National Oil Corporation (NOC) to study the potential for hydrocarbon exploration and development at three key oilfields.
Libya, Africa’s second-largest oil producer and a member of the Organisation of the Petroleum Exporting Countries (OPEC), continues to battle disruptions in its oil sector. Armed rival factions frequently clash over oil revenues, often forcing shutdowns at vital oilfields.
Despite the ongoing instability since Muammar Gaddafi’s overthrow in 2011, several international energy firms have begun to return. Last year, companies including Eni, OMV, BP, and Repsol resumed exploration after a decade-long suspension.
As part of the latest agreement in the fourth quarter of 2025, the NOC says the memorandum of understanding signed with BP covers studies to evaluate hydrocarbon exploration and production potential in the Messla and Sarir oilfields and nearby areas.
BP will also assess Libya’s broader unconventional oil and gas resources. These include hydrocarbons locked in porous rock formations that require advanced extraction methods like hydraulic fracturing.
BP re-entered the Libyan market in 2007 under an exploration and production sharing agreement with the NOC, covering both onshore and offshore blocks. However, the company suspended opera, due to the country’s conflicts under force majeure conditions due to the country’s.
In 2022, Eni acquired a 42.5% stake and took over operatorship of the agreement, while BP retained its 42.5% share and the Libyan Investment Authority held the remaining 15%. The force majeure was formally lifted in 2023, allowing BP to resume onshore exploration.
Meanwhile, Shell has agreed with NOC to conduct a complete technical and economic feasibility study on the Atshan oilfield and other assets fully owned by the state oil firm. This collaboration aims to evaluate development prospects and boost Libya’s domestic production capacity.
Despite the complex political and security environment, these deals signal renewed investor confidence in Libya’s energy sector.