KEY POINTS
- Aiteo Libya exploration license awarded in Murzuq basin.
- Aiteo Libya exploration license part of revived 2007 bid round.
- Aiteo Libya exploration license expands African independent presence.
Nigeria’s Aiteo has emerged as one of five winners in Libya’s first oil and gas licensing round in nearly 20 years, securing acreage in a renewed push by Tripoli to attract foreign capital and stabilise production.
The award gives the Benedict Peters-led company an exploration foothold in the Murzuq basin, a prolific but historically volatile onshore region in the country’s southwest. The Aiteo Libya exploration license places the African independent alongside global energy majors as Libya attempts to reset investor confidence after years of political upheaval.
Libya’s National Oil Corporation said the round allocated five of 20 blocks on offer. Chevron was awarded acreage in the Sirte basin, marking a notable expansion of its presence in the North African producer. Other successful bidders included a joint venture between Italy’s Eni and QatarEnergy, as well as a consortium comprising Spain’s Repsol, Hungary’s MOL Group and Turkiye Petrolleri.
Aiteo Libya exploration license marks market reopening
The licensing process is the first since 2007 and is widely viewed as a test of Libya’s ability to restore credibility with international energy companies. Since the 2011 uprising that toppled Muammar Gaddafi, rival administrations and disputes over oil revenue distribution have repeatedly disrupted output.
Acting NOC Chairman Masoud Suleman described the auction as a signal that Libya is re-engaging with global investors under revised contractual terms. Officials say the updated model aims to offer more competitive fiscal conditions to encourage long-term commitments.
Furthermore, the Aiteo Libya exploration license adds a new African player to a market traditionally led by supermajors and state-backed entities, potentially broadening the profile of operators in the country’s upstream sector.
The license tied to output targets
According to Billionaires Africa, the awards follow a separate upstream investment agreement involving TotalEnergies and ConocoPhillips, part of a broader strategy to expand capacity. Prime Minister Abdelhamid Dbeibah has set a target to raise Libya’s oil production by 850,000 barrels per day over the next 25 years, from about 1.4 million barrels per day currently.
Suleman said authorities will continue discussions with unsuccessful bidders, adding that they may make further allocations if the parties align on commercial terms.
For Aiteo, the move extends its footprint beyond West Africa into a frontier market with significant reserves but operational risk. Industry observers say investors and regulators will closely monitor execution in the Murzuq basin as Libya works to rebuild consistent production and attract fresh upstream investment.
