• Libya NOC, Chevron sign deal to study unconventional resources

• Study targets Sirte, Murzuq, Ghadames basins with major potential

• Move signals return of majors amid push to boost output

Libya's National Oil Corporation (NOC) and U.S. energy major Chevron have signed a memorandum of understanding to conduct a joint study on the country's unconventional hydrocarbon resources. The state oil company announced the agreement on Tuesday, April 28.

The study will cover three sedimentary basins: Sirte, Murzuq and Ghadames. Technical teams from both companies will analyze available geo-seismic data to assess development prospects, the NOC said.

The assessment marks the first study of its kind in Libya on unconventional resources. NOC President Masoud Suleiman told the Libya Herald at the signing ceremony that the agreement was an exceptional step that would pave the way for similar agreements.

Preliminary estimates provided by the NOC point to a hydrocarbon potential of 123 trillion cubic feet of gas and approximately 18 billion barrels of oil across the three basins. For context, Libya's conventional reserves are estimated at 48 billion barrels, the largest on the African continent, according to Energy Intelligence data.

The memorandum builds on a previous agreement signed in late March between the same parties, covering the evaluation of offshore block NC146. It also underscores the gradual return of Chevron to Libya, which the U.S. major left in 2010, before the 2011 conflict that led to the fall of Muammar Gaddafi.

That return reflects a broader trend. Several multinationals, including Shell, BP and ExxonMobil, signed similar agreements with the NOC in 2025, according to S&P Global. In January of that year, the state company launched its first exploration tender in 17 years, covering 22 onshore and offshore blocks. The process drew interest from more than 37 pre-qualified companies, according to Risk Advisory.

A Production Target of 1.6 Million bpd in Sight

As Agence Ecofin reported earlier this month, the NOC announced that Libya's oil production has reached approximately 1.43 million barrels per day, the highest level recorded in more than a decade. That figure comes as the country targets output of 1.6 million barrels per day by the end of 2026.

In an interview with CNBC Arabia in October 2025, Khalifa Abdelsadek, petroleum and gas minister in the Government of National Unity, said that an investment program of between $3 billion and $4 billion had been planned to meet that goal. The funds are to be directed toward infrastructure upgrades and production capacity development.

Libya's oil revenues reached $21.9 billion in 2025, an 18% increase from the $18.6 billion recorded in 2024, according to data from the Central Bank of Libya.

That momentum, however, depends on a fragile political environment. The country is still divided between two rival governments, one based in Tripoli and one in the east, where the majority of oil fields are located under the control of forces loyal to Gen. Khalifa Haftar.

In September 2024, a production shutdown ordered by the eastern faction caused output to fall to 580,000 barrels per day, S&P Global noted, a precedent that highlights the persistent risks facing international majors operating in the country.

Abdel-Latif Boureima