5 March 2025: NOC holds event to launch long-awaited exploration bidding round
This week we look at the launch of Libya's long-awaited oil and gas bidding round, as well as SRSG Tetteh settling into her new position and Macron meeting Haftar in Paris.
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NOC holds event to launch long-awaited exploration bidding round; Opponents claim the bidding violates HoR legislation
Incident: This week, the National Oil Corporation (NOC) finally announced the launch of the long-awaited exploration bidding round.
On 3 March, the Acting NOC Chairman Masoud Suleiman announced the launch of the Public Bidding Round for hydrocarbon exploration contracts in Libya at an event held at the Rixos Hotel in Tripoli. The Government of National Unity (GNU) PM Abdul Hameed Dabaiba, the Acting GNU Oil Minister Khalifa Abdul Sadiq, and various NOC and Libyan officials attended, along with representatives of international oil companies, international diplomats and the media.
Suleiman highlighted that this will be the first bidding round in seventeen years, where ‘vast areas of Libyan territory remained outside the scope of oil exploration’ during that time. He praised the NOC workers and the GNU for realising the achievement of launching the bidding round, noting that exploration in new areas does not only mean the production of oil and gas, but also development, employment and services for those regions, as well as increasing national income. The event included presentations on the Libyan oil sector, including information on the reservoirs and exploration areas, as well as a review of Libya's oil and gas potential, and investment opportunities available to global companies.
In his speech, PM Dabaiba said that the bidding round is ‘a clear message that Libya is ready to open up to global businesses within a modern and transparent investment environment.’ He said the GNU has worked to remove obstacles in the oil and gas sector, leading to outstanding production rates of 1.4 million bpd of crude, with plans to boost Libya's location as a major energy supplier. He added that sustainability of production requires exploring new resources to compensate productive reserves and working to strengthen Libya’s position in global gas markets through infrastructure development. This will contribute to increasing export capacity and securing power supply to European and global markets.
In the run up to the launch event, some House of Representatives (HoR) members and former GNU Oil Minister Muhammed Aoun expressed concern about the move due to it being a violation of existing legislation.
On 2 March, member of the HoR Energy Committee Miloud al-Aswad said that any public tender for exploration is considered a violation of laws, legislation and the 2020 Geneva Agreement. He noted that in 2023, the HoR issued Decision No. 15 which prohibits the disposal of sovereign wealth such as oil and gas until an elected government takes over the administration of Libya. He added that the NOC has not yet provided a briefing to the HoR Energy Committee regarding the public tender and that the committee rejects any tender or disposal of sovereign wealth without clarifying the details.
On 4 March, Aoun reportedly said that the announcement of the exploration round violates HoR Decision No.15 of 2023, warning foreign partners that they will be held accountable sooner or later for violating legislation and failing to implement judicial rulings. He said ‘the sector is being destroyed by incompetence, lack of capability, inefficiency and unworthiness.’
Comment: The bidding round will feature 22 zones, both onshore and offshore, aiming to boost crude production to 2 million bpd. According to the NOC presentation, Libya has 167 active contractual blocks, 18 active operators, and 409,000 km2 of total acreage under contractual blocks. The bidding round aims to rejuvenate mature fields, enhance production capacity and diversify the energy mix. It aims to maximise resource development and ensure a high reserve to replacement ratio. A strategic focus will be on enticing exploration in medium-to high-risk and deep offshore areas; developing undeveloped discoveries and greenfield projects; implementing IOR/EOR techniques across mature brownfields and implementing niche-technology for focused exploration.
The launch of a new bidding round has been touted by the NOC and Ministry of Oil and Gas (MOOG) for well over a year now. It is understood that internal wrangling over the control of the bidding process has contributed to the delay. Indeed, the precedent for the smooth agreement of new exploration or development contracts in the Libyan oil sector with international oil companies is not promising. Although Eni was able to agree a $8 billion gas production deal in 2023 with the NOC, it was contested by many Libyan actors and in practical terms, little has been delivered.
Most notably, the planned deal for an international consortium - including Italy’s Eni, France’s Total and the UAE’s Adnoc - to develop the NC7 Hamada field in the Ghadames Basin fell through in 2024 after resistance from the MOOG (then under Oil Minister Muhammed Aoun), the Attorney General, the Audit Bureau, the HoR and others, citing concerns about the contracting process and whether the deal was good value for the Libyan state and Libyan people. Nevertheless, the GNU and NOC remain keen to revive the NC7 deal. Aoun was put under investigation but then cleared in 2024, but said he was temporarily stepping down due to PM Dabaiba’s failure to engage with him.
Significance: This long-delayed announcement of the new bidding round was delivered with much fanfare, and was clearly presented as a GNU-NOC initiative which both entities hope to use to entice major international oil players to increase or begin their investments in the country. Libya’s oil sector badly needs additional international investment in order to increase its current levels of production – indeed, additional funding is required just to sustain the current levels of around 1.4 million bpd of crude. Furthermore, the Libyan economic situation remains fragile, with a growing USD deficit and no agreement on curbing state spending – as such, increased income from hydrocarbons is needed to keep the country afloat.
The process of accepting and awarding bids is likely to be highly politicised, and will be fraught with challenges and conflict. There are likely to be legal challenges to the bidding round itself as well as to any eventual contracts which are awarded. This may make possible investors, especially those new to Libya, wary of the process. There are likely to be challenges, both formal and informal, over who has the authority to set the terms of the exploration round and who makes the final decisions over the awarding of the contracts.
On the NOC side, there is likely to be significant pressure on Suleiman and on other key oil leaders to favour certain bids. There is also likely to be pressure from international actors with an interest in securing oil contracts in Libya. The communities living in the areas covered by the exploration bids are also likely to want a say in the bidding process to ensure that new contracts protect their local environments and provide services, development and job opportunities. This could see an increase in localised protests and campaigns around these issues.
In short, the launch of the exploration bidding round is likely to herald a period of both increased potential and increased chaos for the Libyan oil sector, with the net outcome far from clear at this point.
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Tetteh continues her introductory meetings and the Advisory Committee meets for third time
Incident: This week, SRSG Hanna Tetteh has continued to hold introductory meetings with key Libyan and international stakeholders in Libya. On 26 February, Tetteh and Deputy SRSG Stephanie Koury met with the House of Representatives (HoR) Speaker Aqeela Saleh in Benghazi, discussing ‘the urgent need for a unified national vision to break the current deadlock and pave the way for inclusive national elections.’ The HoR readout said that Saleh stressed the need for cooperation and communication with UNSMIL, as well as highlighting the HoR’s commitment to the political agreement and the outcomes of the 6+6 Committee, and the need to unify the executive authority.
Western officials ramp up military cooperation efforts with Libya as Macron receives Haftar in Paris, and the US Air Force conducts joint training mission
Incident: On 26 February, French President Emmanuel Macron received LNA Commander Khalifa Haftar at the Élysée Palace in Paris. They discussed the latest developments in Libya in the light of the new UN initiative to resolve the crisis as well as regional challenges and possibilities to enhance cooperation. Macron praised the role of the LNA in maintaining security in Libya, including in the southern region, and recognized the role of Haftar in Libya’s politics. A key topic was the Russian presence in Libya and the Russian role in the Sahel region.
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Tetteh continues her introductory meetings and the Advisory Committee meets for third time
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