By: Energy capital & power

Marking Libya’s re-entry to the global energy stage, the country’s 2025 licensing round – launched in March 2025 – has already drawn interest from over 40 prospective bidders. Featuring 22 on- and offshore blocks for licensing as well as a new contractual framework, the round is expected to entice new exploration. It will conclude prior to the Libya Energy & Economic Summit (LEES) – scheduled for January 24-26, 2026.

Modern Terms for Global Partners

Part of the 2025 licensing round, Libya has introduced the fifth generation of its Exploration and Production Sharing Agreement (EPSA V) – a modernized contractual framework designed to attract international oil companies (IOCs) with more competitive fiscal terms. Building on decades of evolution from a concession-based system to state-partnered agreements, EPSA V balances investor appeal with national interest amid shifting global dynamics.

While the full terms of EPSA V have yet to be publicly disclosed, a summary released by the National Oil Corporation (NOC) and Libya’s Ministry of Oil and Gas signals key changes from the previous EPSA IV model. Most notably, EPSA V removes the B-Factor, a mechanism that previously reduced a contractor’s profit share as production volumes rose. In its place, the agreement introduces a revised A-Factor Formula – measuring profitability against expenditures – along with a new sliding-scale R-Factor system. This structure replaces abrupt step-downs in profit shares with more gradual reductions, offering contractors greater predictability and a stronger return on investment.

EPSA V also maintains the NOC’s role in tax payment on behalf on contractors, streamlining administrative obligations and reducing fiscal exposure for foreign investors. This continuity, combined with fiscal enhancements, signals Libya’s intent to re-establish itself as a competitive upstream destination.

Boosting Investor Confidence

Serving as part of Libya’s 25-year strategy to add 8 billion barrels of crude oil to its proven reserves, the 2025 licensing round features newly selected blocks based on geological viability and proximity to existing infrastructure. These areas present lower entry costs and quicker development timelines, particularly attractive to investors seeking early returns. Meanwhile, the NOC is continuing to enhance its understanding of Libya’s petroleum basins through comprehensive geological and geophysical studies, which will inform future bidding opportunities.

To support a transparent and streamlined bidding process, the NOC has unveiled a dedicated online platform for managing the licensing round. The Virtual Data Room will be accessible from May 19 to July 17, 2025, offering secure, confidential access to technical, legal and financial data. The clarifications period will run until August 14 – supporting due diligence – while bid openings and the announcement of successful applicants will occur on November 15. Contract signings under the EPSA framework are scheduled for November 22-30, 2025.

Libya’s 2025 licensing round is expected to be a major focus at the upcoming LEES in Tripoli, where industry leaders and policymakers will be well-positioned to assess its impact on the country’s upstream revival. The rollout of investor-friendly frameworks, opportunities to participate in unexplored and legacy basins, and Libya’s energy transformation strategy mark a key milestone in the country’s strategy to double crude output and unlock vast untapped reserves. The summit will serve as a vital forum to evaluate early outcomes, forge new investment partnerships, and align global interest with Libya’s long-term vision to reach 2 million barrels per day by 2028.

Join industry leaders at the Libya Energy Economic Summit 2026 in Tripoli and explore investment opportunities in one of North Africa’s most dynamic energy markets. LEES 2026 offers a premier platform for partnerships, innovation and sector growth. Visit www.libyasummit.com to secure your participation. To sponsor or participate as a delegate, please contact sales@energycapitalpower.com