Key Points
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Aiteo secured a Murzuq basin exploration license in Libya’s first oil bid round since 2007.
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Libya awarded five of 20 blocks as it works to revive foreign investment and stabilize production.
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The government plans to boost output by 850,000 barrels per day over the next 25 years.
Nigeria’s Aiteo, one of Africa’s largest privately held energy companies controlled by billionaire Benedict Peters, has secured an exploration license in Libya as the oil-rich nation works to revive foreign investment after years of conflict and stop-start production.
Libya’s National Oil Corporation (NOC) announced the results of its first licensing round in nearly two decades, awarding five of the 20 blocks on offer. Alongside Aiteo, winners included U.S. oil major Chevron and several European-regional consortia.
Aiteo’s award places an African energy company in a sector long dominated by supermajors and state-backed firms. The company secured a block in the Murzuq basin, a prolific onshore region in Libya’s southwest that has faced repeated disruptions due to insecurity.
Chevron won acreage in the Sirte basin, marking a notable return to Libya as authorities seek foreign expertise and capital to stabilize and expand production.
Another block was awarded to a partnership between Italy’s Eni and QatarEnergy, while a separate consortium comprising Spain’s Repsol, Hungary’s MOL Group and Turkiye Petrolleri also secured acreage.
Libya Signals Stability to Energy Investors
The awards come as Libya’s leadership attempts to project stability to investors who have remained cautious since the 2011 uprising that toppled Muammar Gaddafi and triggered prolonged civil unrest.
The country remains divided between rival administrations in the east and west, with disputes over the central bank and oil revenues repeatedly disrupting output.
Libyan officials framed the auction as a reset for the sector. The NOC said it introduced revised, more investor-friendly contract terms aimed at replacing frameworks that previously discouraged sustained investment.
Acting NOC chairman Masoud Suleman described the round as a step toward rebuilding trust and restoring institutional stability in an industry that underpins the economy.
Production Growth Plans and Next Steps
The licensing decision follows a major upstream investment agreement announced last month involving France’s TotalEnergies and U.S. producer ConocoPhillips, part of a broader strategy to expand capacity and modernize infrastructure.
Prime Minister Abdelhamid Dbeibah has outlined plans to increase production by 850,000 barrels per day over the next 25 years, from current levels of roughly 1.4 million barrels per day.
Suleman said a committee will review feedback from unsuccessful bidders and refine terms where necessary, raising the possibility that additional blocks could be awarded if negotiations over work commitments progress.
Aiteo’s entry into Libya will be closely watched both in Tripoli and across African energy markets. Its performance in Murzuq will test whether a continental operator can successfully navigate Libya’s complex operating environment while helping unlock new production in a country seeking to reclaim its position in global energy markets.
