Libya signed a 25‑year oil development agreement on Saturday, January 24, 2026, with France’s TotalEnergies and U.S.‑based ConocoPhillips. The contract will bring more than $20 billion in foreign‑financed investment into Libya’s oil sector and could lift production capacity by up to 850,000 barrels per day, a figure that would more than double the country’s current output.
The partnership will be structured as a joint venture in which TotalEnergies will hold a controlling stake, while ConocoPhillips will contribute its existing operational expertise and capital. Together they will develop new fields and upgrade existing infrastructure, with a focus on the Waha Oil Company, Libya’s state‑run subsidiary that currently produces between 340,000 and 400,000 barrels per day.
The deal is a major expansion for TotalEnergies, which already accounts for nearly half of Libya’s oil production. For ConocoPhillips, the agreement builds on its existing presence in the region and offers a low‑cost, high‑volume opportunity that aligns with its upstream growth strategy. The joint venture will also provide a platform for future exploration and development projects in the broader North‑African basin.
From Libya’s perspective, the agreement is expected to generate $376 billion in net revenues over the life of the contract, create thousands of jobs, and strengthen the country’s economic resilience. The signing took place on the sidelines of the Libya Energy and Economic Summit in Tripoli, underscoring the government’s confidence in the project’s long‑term benefits.
While no immediate market reaction data is available, the deal is widely viewed as a positive signal for investors in the region, reflecting renewed confidence in Libya’s political stability and the attractiveness of its low‑cost oil reserves.
The agreement also positions both companies to capture a larger share of Libya’s output as global demand for oil remains resilient, reinforcing TotalEnergies’ strategy of combining low‑cost oil and gas growth with integrated power expansion.
The long‑term nature of the agreement provides a stable source of future earnings, supporting the companies’ dividend and buyback commitments and enhancing their long‑term capital allocation plans.
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