Key Points
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Aiteo secured a Murzuq basin exploration block in Libya.
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Libya awarded five oil blocks in its first bid round since 2007.
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The government plans to raise oil production by 850,000 barrels per day.
Aiteo has secured a rare exploration license in Libya, stepping into one of Africa’s most politically complex oil markets as Tripoli reopens its doors to foreign drillers.
Libya’s National Oil Corporation announced the outcome of its first bid round since 2007, awarding five of the 20 blocks on offer.
Among the winners were U.S. major Chevron, Italy’s Eni in partnership with QatarEnergy, and a consortium that includes Spain’s Repsol, Hungary’s MOL Group and Turkiye Petrolleri.
Aiteo, the Nigerian energy company controlled by billionaire Benedict Peters, won a block in the Murzuq basin in the country’s southwest.
The onshore basin is known for its strong geology but has faced repeated shutdowns due to insecurity and political tensions.
The award places an African independent alongside global oil giants in a space traditionally dominated by supermajors and state backed players.
Chevron picked up acreage in the Sirte basin, marking a notable re entry into Libya as authorities seek technical expertise and capital to stabilise and expand production.
The other winning groups reflect a mix of European and regional interest in a country that still holds Africa’s largest proven oil reserves.
Libya’s Oil Sector Reset and Reform Efforts
The licensing round is part of a broader effort by Libyan authorities to signal that the country is ready for business again.
Oil production has been repeatedly disrupted since the 2011 uprising that toppled Muammar Gaddafi, with rival administrations in the east and west clashing over control of revenues and key institutions.
Disputes involving the central bank and oil income have at times pushed output sharply lower.
Officials described the auction as a reset for the sector. The National Oil Corporation said it introduced revised contract terms designed to be more attractive to investors after previous frameworks struggled to draw sustained interest.
Acting NOC chairman Masoud Suleman framed the round as a step toward restoring confidence and rebuilding institutional stability in the oil industry.
Production Growth Plans and Next Steps
The bid round follows a major upstream investment agreement announced last month involving TotalEnergies and ConocoPhillips.
Prime Minister Abdelhamid Dbeibah has outlined plans to raise production by 850,000 barrels per day over the next 25 years, from current levels of roughly 1.4 million barrels per day.
A committee will now review feedback from unsuccessful bidders, with the possibility that additional blocks could be awarded if negotiations over work commitments and terms progress.
Aiteo’s move into Libya will draw attention both locally and across the continent. The company’s performance in Murzuq will test whether an African independent can navigate Libya’s operating challenges while helping to unlock new production in a country eager to regain its footing in global energy markets.
