Libya to Sign $20B-Plus, 25-Year Deal with TotalEnergies and ConocoPhillips

• The agreement involves more than $20 billion in foreign-financed investment with expected net revenues surpassing $376 billion over the 25-year term
• Production capacity is targeted to increase by up to 850,000 barrels per day, a major boost for Libya as one of Africa's largest oil producers
• Libya will also sign additional agreements with Chevron and Egypt's oil ministry, strengthening international partnerships after years of output disruptions since the country split between rival authorities in 2014

Summary: Libya Signs Major Oil Development Deal with TotalEnergies and ConocoPhillips

Key Deal Terms:

Libya will sign a landmark 25-year oil development agreement on Saturday with France's TotalEnergies and U.S.-based ConocoPhillips. The deal involves over $20 billion in foreign-financed investment and aims to boost Libya's production capacity by up to 850,000 barrels per day. Prime Minister Abdulhamid al-Dbeibah projects the agreement will generate net revenues exceeding $376 billion over its duration.

Structure and Additional Agreements:

The deal will be executed through Waha Oil Company, a subsidiary of Libya's state-run National Oil Corporation. Libya also plans to sign a memorandum of understanding with U.S. oil major Chevron and a cooperation agreement with Egypt's oil ministry.

Market Context:

Libya ranks among Africa's largest oil producers, but output has suffered repeated disruptions since 2014 when the country fractured between rival eastern and western authorities following the NATO-backed uprising that ousted Muammar Gaddafi. The chaotic decade has significantly hampered the nation's oil production capabilities.

Strategic Significance:

According to Prime Minister Dbeibah, these agreements represent a strengthening of Libya's relationships with major international energy partners and will generate substantial additional resources for the national economy. The deal signals renewed international confidence in Libya's oil sector and could significantly impact global oil supply dynamics if the production capacity increases materialize.

Companies Involved:

• TotalEnergies (France)
• ConocoPhillips (U.S.)
• Chevron (U.S.)
• Egypt's oil ministry