US Oil Companies Ramp Up Libya Investments in 2026 Despite Historical Challenges
US oil companies are ramping up investments in Libya’s energy sector, signaling renewed confidence in the North African nation’s oil and gas potential despite historical geopolitical challenges. Major players like Chevron, ConocoPhillips, Halliburton, and SLB are driving this resurgence as Libya prioritizes production growth and economic stabilization.
Chevron’s Strategic Return
After a 15-year absence, Chevron has inked a preliminary memorandum of understanding (MoU) with Libya’s National Oil Corporation (NOC) to evaluate fresh exploration prospects and enhance output. This move positions Chevron among qualifiers for upcoming bidding rounds.
Key Deal at Waha Oilfield
Libya recently finalized a landmark 25-year agreement with France’s TotalEnergies and US-based ConocoPhillips through the Waha Oil Company. Valued at over $20 billion and supported by external financing, the pact extends concessions until 2050 with improved fiscal conditions. It targets boosting capacity from roughly 370,000 barrels per day (bpd) to up to 850,000 bpd, potentially generating substantial long-term revenues estimated in the hundreds of billions.
ConocoPhillips, holding a 20.4% stake in Waha (alongside TotalEnergies at the same level, with NOC majority ownership), has maintained a presence since re-entering in 2005 after earlier sanctions-related exits. Executives highlight the renegotiated terms as mutually advantageous, enabling greater capital commitment amid Libya’s funding constraints for upstream development.
Service Providers Expand Aggressively
Halliburton anticipates 2026 as a pivotal year, with plans to deploy additional equipment, personnel, and resources. Leadership views Libya as the region’s premier growth hub, following the company’s return two years ago after pausing during earlier unrest.
SLB (formerly Schlumberger) expresses strong optimism, citing advancements in payment reliability and a favorable operating climate that unlocks attractive prospects for increased activity.
Upcoming Licensing Round
Libya plans to award new exploration and production licenses in February 2026—the first such process in over 17 years. US firms including Chevron and ExxonMobil have advanced to the final stages, under the updated Exploration and Production Sharing Agreement (EPSA) framework designed to draw international expertise.
Historical Context and Current Dynamics
Relations between the US and Libya faced strains under Muammar Gaddafi, including sanctions over alleged terrorism support and the 1986 US airstrikes. Post-2011 revolution events, such as the Benghazi consulate attack, added complications. Today, dual administrations persist—one UN-recognized in Tripoli under Prime Minister Abdul Hamid Dbeibah, another in the east backed by Field Marshal Khalifa Haftar—yet energy collaboration advances.
Oil and gas represent around 95% of Libya’s exports and state income. Sector gains contributed to an estimated 13.3% real GDP expansion last year, per World Bank data. Attracting foreign capital supports not only higher output but also wider recovery efforts.
Challenges Ahead
Security risks and political divisions remain hurdles. At the recent Libya Energy & Economic Summit (LEES) in Tripoli, US adviser Massad Boulos stressed the need for unified stability to safeguard long-term investments, emphasizing that success hinges on creating a secure environment beyond resource potential.
These developments mark a promising chapter for Libya’s hydrocarbons industry, with US involvement bolstering revival amid global energy demands.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.