Libya’s state-run National Oil Corporation announced late Thursday it had signed a memorandum of understanding with U.S. energy giant Chevron to conduct a technical study of the promising offshore NC 146 block in the Mediterranean Sea.
The agreement marks another step in the North African nation’s efforts to attract major international oil companies back to its energy sector after years of political instability and limited foreign investment.
NOC Chairperson Mesud Suleiman described the deal as more than a technical exercise. In a statement, he said the memorandum covers preparation of a comprehensive technical study for the NC 146 offshore block, an area expected to help expand Libya’s national oil reserves and potentially lead to significant discoveries.
“This partnership is not only a technical agreement but also a message of confidence in Libya’s investment environment and evidence of the return of major companies to explore and operate in promising opportunities in our country,” Suleiman said.
The offshore block lies in the Sirte Basin extension, a region known for its hydrocarbon potential in the gas-rich Mediterranean waters.
Broader context of Chevron’s return
The MoU follows Chevron’s recent entry into Libya, including its selection in the country’s first major licensing round since 2007. The U.S. supermajor has shown renewed interest in both onshore and offshore opportunities as Libya seeks to increase production toward a target of 2 million barrels per day.
Industry observers view such partnerships as vital for modernizing Libya’s aging infrastructure and applying advanced exploration technology in under-explored offshore areas.
Libya holds some of Africa’s largest proven oil reserves, yet output has often been hampered by internal divisions and security challenges. Successful development of blocks like NC 146 could help stabilize revenue streams and support economic recovery.
Analysts say the Chevron agreement signals improving investor sentiment toward Libya’s oil sector, even as the country continues to navigate complex political dynamics.
The memorandum does not yet commit Chevron to full exploration or production but lays groundwork for potential future investment pending positive study results.
