The deal, finalized during the Libya Energy and Economic Summit in the capital, marks a significant shift in the war-scarred nation’s effort to rebuild its energy sector and reassert itself as a reliable supplier in global oil markets. Under the revised terms, the concessions — which currently produce approximately 370,000 barrels of oil equivalent per day — are expected to reach 850,000 barrels daily over the medium term.
The extension comes as Libya seeks to capitalize on sustained production gains and renewed international confidence following years of political fragmentation and armed conflict that disrupted operations across the country’s oil fields and export terminals.
Strategic Shift in Investment Terms
The agreement introduces a new fiscal framework designed to incentivize substantial capital expenditure and technological upgrades. TotalEnergies, which has maintained a presence in Libya for decades, said the revised terms would enable accelerated development of the North Gialo field, a project expected to add up to 100,000 barrels of oil equivalent per day to national output.
“Extending the Waha concession, with its low-cost and low-emission giant resources offering many opportunities to grow production, fits perfectly with our strategy,” TotalEnergies Chief Executive Patrick Pouyanné said in a statement released following the signing ceremony.
The Waha concessions are owned by Libya’s National Oil Corporation, which holds a 59.16 percent stake, with TotalEnergies and ConocoPhillips each controlling 20.42 percent. Operations are managed by Waha Oil Company, a wholly owned NOC subsidiary.
In 2025, TotalEnergies averaged net production of around 113,000 barrels of oil equivalent per day in Libya, making the country a significant contributor to the French energy giant’s global portfolio. The company has weathered multiple shutdowns and force majeure declarations over the past decade as Libya’s civil conflict disrupted both production and exports.
Government Push for Economic Recovery
Libyan Prime Minister Abdul Hamid Al-Dbeibeh, whose government controls the western regions including Tripoli, framed the Waha extension as part of a broader strategy to attract foreign capital and restore confidence among international energy companies.
“These steps confirm Libya’s seriousness in opening its oil and gas sector to credible international partners and improving the investment environment,” Al-Dbeibeh said during his address at the summit.
The prime minister said the anticipated $20 billion in foreign investment would be channeled toward upgrading aging upstream infrastructure, including wells, pipelines and processing facilities that have suffered from years of underinvestment and conflict-related damage.
Libya’s crude oil output exceeded 1.4 million barrels per day in 2025, while total hydrocarbon production surpassed 1.52 million barrels of oil equivalent daily in early 2026, according to government figures. Oil revenues reached approximately $21.9 billion last year, representing a roughly 15 percent increase compared with 2024.
The revenue gains reflect both higher production levels and relatively stable global oil prices, though Libya’s ability to sustain output remains vulnerable to political instability and recurring disputes over revenue distribution between competing administrations in the country’s east and west.
Expanding International Engagement
Beyond the Waha deal, Libya announced additional partnerships during the summit aimed at broadening its engagement with global energy companies.
A memorandum of understanding signed with Chevron marks the American oil major’s return to Libya after an absence of more than a decade. The agreement focuses on assessing potential exploration and development opportunities, though specific project details were not disclosed.
Libya and Egypt also formalized an oil and gas cooperation agreement intended to strengthen coordination on energy security and cross-border infrastructure development. The pact reflects growing regional efforts to integrate energy policies and improve supply reliability across North Africa.
Al-Dbeibeh highlighted an $8 billion offshore gas project with Italy’s Eni, which is scheduled to begin production in 2026 and is expected to deliver approximately 750 million standard cubic feet per day of natural gas. The project is viewed as critical to meeting domestic energy demand and potentially supplying European markets seeking to diversify away from Russian gas.
Libya launched its first major oil and gas licensing round in more than 17 years in March 2025, offering 22 onshore and offshore blocks under revised fiscal and profit-sharing arrangements. The round represents a significant policy shift aimed at attracting both established majors and independent exploration companies.
Al-Dbeibeh said results of the licensing round are expected to be announced in February 2026, with successful bidders likely to be offered production-sharing contracts that provide more favorable terms than previous concession models.
Despite the optimism surrounding new agreements, Libya’s energy sector continues to face substantial challenges. The country remains divided between rival administrations, with control over oil facilities and revenue allocation frequently contested. Armed groups have periodically shut down production and blocked exports to press political or economic demands.
The political landscape remains fragmented more than a decade after the 2011 uprising that toppled Muammar Gaddafi. Competing governments in Tripoli and the eastern city of Tobruk have struggled to agree on revenue distribution mechanisms, with oil infrastructure often becoming leverage in broader power struggles.
International energy companies operating in Libya must navigate complex security arrangements and political risk, though many view the potential returns as justifying continued engagement. Libya holds Africa’s largest proven oil reserves and some of the lowest extraction costs globally, making it an attractive prospect despite governance uncertainties.
TotalEnergies and ConocoPhillips have maintained operations in Libya through multiple political transitions, viewing their stakes in the Waha concessions as strategic long-term assets. Both companies have experience managing operations in challenging environments, though Libya’s particular combination of political instability and infrastructure vulnerability presents ongoing operational complexities.
The Waha extension and related deals signal that major international players are betting on Libya’s long-term stabilization, even as short-term disruptions remain possible. For Al-Dbeibeh’s government, attracting and retaining foreign investment is seen as essential to rebuilding state institutions and funding public services in a country where oil revenues account for the vast majority of government income.
The extension through 2050 provides a framework for multi-decade planning, though actual investment flows will depend heavily on Libya’s ability to maintain political cohesion and protect critical infrastructure from sabotage or armed conflict. Energy analysts note that securing long-term commitments from international majors represents a significant vote of confidence, but implementation will require sustained political stability.
European energy security considerations have also played a role in renewed international engagement with Libya. As European nations seek to reduce dependence on Russian energy supplies following Moscow’s invasion of Ukraine, North African producers including Libya have gained strategic importance as alternative sources of both oil and natural gas.
The Eni gas project, in particular, could help diversify European gas supplies while providing Libya with much-needed revenue and technical expertise. Italy has historically maintained close energy ties with Libya, and Rome has actively supported efforts to stabilize the country and restore energy production.
As Libya positions itself to reclaim its status as a major oil exporter, the coming months will test whether recent agreements translate into sustained production growth or become another chapter in the country’s turbulent post-revolution energy history. Industry observers will be watching closely to see if the government can maintain the political consensus necessary to support large-scale foreign investment and infrastructure development.
The success of the Waha extension could serve as a template for future energy agreements, potentially unlocking additional investment across Libya’s oil and gas sector and supporting the country’s broader economic recovery efforts.
