Libya Signs $20B Oil Development Deal With TotalEnergies and ConocoPhillips

TRIPOLI, Libya — 2026-01-27 — Libya has agreed to a $20 billion oil and gas development deal with international energy companies TotalEnergies and ConocoPhillips , marking one of the country’s largest energy investments in more than a decade, according to Libyan officials and international energy reporting.
Updated 16:05 GMT

The agreement focuses on expanding production capacity, rehabilitating aging oilfields, and upgrading export infrastructure, officials from Libya’s National Oil Corporation (NOC) said in statements carried by Reuters and regional media. The deal is expected to be implemented in phases, with early investments targeting brownfield redevelopment to stabilize output before longer-term expansion.

Libya, a member of the Organization of the Petroleum Exporting Countries , holds Africa’s largest proven oil reserves but has struggled to sustain production due to years of political instability, underinvestment, and infrastructure disruptions. Authorities said the new investment aims to reverse declines and secure steady output for international markets.

Energy analysts cited by Reuters said the scale of the deal signals renewed confidence by major Western firms in Libya’s upstream sector, despite persistent political divisions. “This is a calculated bet on Libya’s long-term production potential,” one North Africa-focused energy consultant said.

Public reaction inside Libya has been cautious. Economists interviewed by local outlets welcomed the potential for increased state revenues and job creation but warned that benefits would depend on transparent revenue management and security guarantees for operations.

Regionally, energy officials in neighboring North African states said the deal could influence production dynamics across the Mediterranean, particularly as European countries continue seeking diversified energy supplies.

Libya’s oil sector has been repeatedly disrupted since 2011, with output swinging sharply due to blockades and conflict. While the country has periodically returned production above one million barrels per day, maintaining those levels has proven difficult without sustained foreign investment.

TotalEnergies and ConocoPhillips already have longstanding interests in Libyan oil assets. Analysts say the new $20 billion commitment reflects a shift from maintenance to expansion, positioning Libya as a potentially stronger supplier amid global energy volatility.

For Africa, the deal reinforces the continent’s role as a strategic energy source, while highlighting the growing competition among international firms for access to high-quality reserves.

What’s Next

Project implementation will depend on security conditions and regulatory approvals. Libyan officials stated that initial work could commence later this year, with production gains anticipated to occur gradually over several years. International partners will be watching closely for signs of political stability and contract enforcement.