Summary:

On 24 August 2026, Libya’s National Oil Corporation (NOC) signed a production-sharing agreement with US energy major Chevron to explore and develop onshore Area 106 in the Sirte Basin, following its award under Libya’s 2025 oil and gas bidding round. 

The agreement will bring Chevron’s technical expertise and advanced exploration technology into one of Libya’s main hydrocarbon regions as the NOC seeks to raise production from around 1.5 million bpd to 2 million bpd. Chevron’s renewed presence has also expanded beyond the latest deal, with the company and NOC signing a technical study agreement for offshore Block NC146 in March and a memorandum in April covering unconventional oil and gas resources in the Sirte, Murzuq and Ghadames basins. 

US Senior Advisor for Arab and African Affairs Massad Boulos welcomed the cooperation, describing Chevron’s return as a sign of growing international confidence in Libya’s investment prospects and suggesting that deeper cooperation could encourage further US investment. 

Outlook: 

As Libya’s political actors remain divided but continue efforts to reunite around a common political framework, the Chevron agreement could provide a parallel economic track while political negotiations remain difficult. 

While the NOC’s mandate and position remain too far removed from the political process to directly influence reunification efforts, its continued pursuit of major international energy deals could help sustain foreign investor interest in Libya and reinforce the economic importance of maintaining continuity in the oil sector. 

The increasingly visible US backing for Chevron’s return also gives the development a broader strategic dimension, particularly as Washington links greater investment in Libya’s energy sector to national unity and the equitable distribution of oil revenues. 

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