NOC Signs Production-Sharing Agreement with Chevron for Area 106

Libya's National Oil Corporation (NOC) has signed a production-sharing contract with Chevron for Area 106, a 7,437-square-kilometre onshore exploration block in the Sirte Basin, formalising months of negotiations following the US company's selection as preferred bidder in February.

The agreement gives contractual effect to the results of Libya's 2025 exploration licensing round, the country's first in 17 years. Chevron's cooperation with NOC began in January with a memorandum of understanding to assess onshore opportunities, before the company was confirmed as winner of Area 106 in the subsequent bid round.

NOC data released during the bidding process identified a gas discovery within the block, with estimated 2P reserves of around 100 million barrels of oil equivalent, alongside a number of additional exploration leads.

NOC Chairman Masoud Suleman said the agreement marked an important step towards the exploration and development of Libya's hydrocarbon resources and would strengthen cooperation with major international energy companies. The deal supports NOC's broader target of raising national oil production to 2 million barrels per day by 2030, which the corporation estimates will require around $40 billion in investment.

Other blocks from the 2025 licensing round were awarded to Eni, Qatar Energy, Repsol, Turkey's TPAO, and Hungary's MOL.