Nigeria’s Aiteo wins rare Libya exploration license

Nigeria’s Aiteo, one of Africa’s biggest privately held energy companies controlled by billionaire Benedict Peters, has landed an exploration license in Libya as the oil rich country tries to revive investment after years of conflict and stop start production.

Libya’s National Oil Corporation announced the results of its first licensing round since 2007, awarding five of 20 blocks on offer. Alongside Aiteo, the winners included U.S. oil major Chevron and several consortia that paired European and regional players.

Aiteo’s award puts an African independent into a space long dominated by supermajors and state backed firms. The company secured a block in the Murzuq basin, a prolific onshore area in Libya’s southwest that has been repeatedly affected by insecurity and disruptions.

Chevron won an onshore license in the Sirte basin, signaling a notable return to Libya for the U.S. company as Tripoli courts foreign expertise to lift output. Another block went to a partnership between Italy’s Eni and QatarEnergy, while a separate consortium featuring Spain’s Repsol, Hungary’s MOLGroup and Turkiye Petrolleri also won acreage.

The awards arrive as Libya’s leaders try to project stability to energy investors who have stayed cautious since the 2011 uprising that toppled Muammar Gaddafi and triggered years of civil strife. The country remains split between rival administrations in the east and west, and disputes over the central bank and oil revenues have repeatedly knocked production offline.

Libya’s oil officials framed the auction as a reset. The NOC said it used a new, more investor friendly contract model aimed at replacing terms that previously discouraged spending. Acting NOC chairman Masoud Suleman described the bid round as a return of trust and a push to restore institutional work in a sector that underpins the economy.

The licensing decision follows a large upstream investment agreement announced last month involving France’s TotalEnergies and U.S. producer ConocoPhillips, part of a longer campaign to lift capacity and modernize facilities. Prime Minister Abdelhamid Dbeibah has said Libya wants to raise daily production by 850,000 barrels over 25 years from about 1.4 million barrels per day now.

Suleman said a committee would be formed to improve bidding terms and negotiate with unsuccessful candidates, suggesting more blocks could be awarded later if differences over work commitments and conditions can be resolved.

Aiteo’s entry will be closely watched in Tripoli and in African energy circles, both for what it signals about confidence in Libya and for what it could mean if a continental operator proves it can drill and develop under Libya’s challenging operating environment.