Summary:

On 11 September 2026, the Libya-Tunisia Joint Exploration, Exploitation and Petroleum Services Company (Joint Oil) announced a new bidding round for exploration in the offshore zone jointly managed by Libya and Tunisia, alongside the development of the Zarat oil and gas discovery.  

The area covers around 3,000km² in the Gabes-Tripoli Basin, with existing 2D and 3D seismic data available. The bidding round will run until 31 December, with bids due by 8 January 2027 and winners expected to be announced in February. The Zarat discovery will be developed as a shared resource through development, production and operating agreements. 

Outlook: 

The reopening of the joint offshore block could give the recent improvement in Libya-Tunisia relations a more substantive economic dimension, particularly through the joint development of energy resources. The project could support activity in Libya’s western offshore area while giving the bilateral relationship a longer-term economic component.  

However, Libya’s political fragmentation and persistent security risks remain important constraints on future energy investment. The progress of the bidding round will therefore be an important indicator of whether renewed bilateral engagement can translate into sustained energy cooperation despite Libya’s wider instability. 

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