Libya: Murzuq Basin oil agreement signed with partners

Libya’s National Oil Corporation (NOC) signed a unified operating agreement with a group of international energy companies on 10 June, aimed at improving efficiency in the Murzuq Basin. The deal comes as Libyan authorities seek to stabilise oil production and attract foreign investment, with oil revenues reaching their highest level in a decade in 2025.

According to the government-friendly North Africa Post, the agreement covers operations at the (I/R) field and brings together Akakus Oil Operations, TotalEnergies, Repsol, Equinor and OMV under a common operational framework. The arrangement seeks to streamline administrative procedures between partners in the Murzuq Basin, one of Libya’s key oil-producing regions.

Libya continues to rely heavily on hydrocarbons to support state revenues, while attempting to rebuild its energy sector after years of political fragmentation and repeated disruptions to production. Oil exports remain central to the country’s economy, making operational stability in major fields a priority for authorities and foreign partners alike.

NOC officials said the agreement would further improve operational efficiency and support more sustainable production. However, questions remain over whether administrative coordination alone can compensate for Libya’s deeper structural constraints, including political fragmentation and recurring instability that continue to disrupt energy infrastructure and investor confidence.

The announcement follows a series of initiatives by the NOC aimed at increasing exploration activity and expanding production capacity, including new licensing rounds and renewed engagement with international energy firms. These measures form part of a broader effort to reassert Libya’s role in global energy markets, despite ongoing concerns over reliability, governance, and long-term investment security.

While the agreement signals continued cooperation between Libya and several major European energy companies, its long-term impact will likely depend on whether operational improvements can be sustained within a stable political and security environment capable of supporting consistent investment and production growth.

North Africa Post, maghrebi.org