Libya has taken a major step toward reclaiming its position as one of Africa’s leading oil producers following the signing of a long-term upstream investment agreement valued at more than $20 billion with U.S. and French energy majors.
The 25-year deal, signed through Libya’s state-owned National Oil Corporation (NOC) and its subsidiary Waha Oil Company, brings together TotalEnergies of France and ConocoPhillips of the United States in one of the country’s most significant energy investments in over a decade.
Strategic Investment to Lift Output
Under the agreement, the international partners will fund the redevelopment and expansion of several producing oil fields operated by Waha Oil Company. The investment is expected to raise Libya’s oil production capacity by up to 850,000 barrels per day over time, supporting the country’s ambition to become Africa’s top oil producer.
Libya currently produces well below its potential due to years of political instability, infrastructure degradation, and underinvestment. Officials say the new capital injection will focus on field rehabilitation, drilling programs, and infrastructure upgrades, allowing output to be sustained and scaled over the long term.
Western Energy Firms Signal Renewed Confidence
The participation of TotalEnergies and ConocoPhillips signals renewed confidence in Libya’s upstream sector and its regulatory framework, despite ongoing political complexities. The deal was finalized during the Libya Energy & Economic Summit in Tripoli, underscoring the government’s push to attract large-scale foreign investment into strategic sectors.
For Libya, the agreement strengthens ties with Western energy firms at a time when global competition for secure oil supply is intensifying. For the companies involved, the deal provides long-term access to low-cost, high-quality crude reserves in North Africa.
Economic and Regional Implications
Libyan authorities expect the project to deliver significant long-term revenues to the state, support job creation, and enhance foreign exchange inflows. Increased production could also improve Libya’s role within OPEC and reinforce its influence in regional energy markets.
For Africa more broadly, the deal highlights a renewed wave of large-scale upstream investment, even as many global producers rebalance portfolios amid the energy transition. It also reinforces North Africa’s importance as a strategic oil supply hub linking African production with European and global markets.
Outlook
While the agreement marks a major milestone, its success will depend on political stability, security conditions, and consistent policy implementation over the life of the contract. If executed as planned, the $20 billion investment could reshape Libya’s oil sector and accelerate its return to the top tier of African producers.
For international investors and energy markets, the deal stands as one of the most consequential upstream commitments on the continent in recent years.
