Libya Prepares for Second Oil Licensing Round Amid Production Growth
Libya's National Oil Corporation (NOC) is gearing up to launch its second oil licensing round, expected to open in late 2026 or early 2027. This round will extend bidding into the Pelagian basin alongside the Sirte, Murzuq, and Ghadames basins covered in the first round.
The NOC's progress since the last licensing round is evident in its production numbers, which have climbed to nearly 1.4 million barrels a day in 2026, the highest level in a decade. The goal for year-end 2026 is 1.6 million barrels a day, with 2 million as the longer-term target, requiring around $40 billion in new investment.
The success of the first round, which saw five blocks awarded to winning bidders, including Chevron and Repsol, can be attributed to the NOC's efforts under Farhat Bengdara's leadership. Bengdara rebuilt the institution into one that could operate by international standards, focusing on capability, environmental performance, gas development, and corporate governance.
The second round will test whether this institutional discipline can be sustained past the leadership transition at the National Oil Corporation. The first round proved that major companies would return once the institution gave them a reason to, but the second round's success depends on replicating the four pillars applied in the first round: capability, environmental performance, gas development, and corporate governance.