BP and Shell have signed new agreements with the state-owned National Oil Corporation (NOC) to re-establish a presence in Libya. This marks the return of two of the largest international energy companies to a country that, despite its vast natural resources, has been overshadowed by civil war and political instability for over a decade.

BP announced on Tuesday a memorandum of understanding with NOC to explore the redevelopment of the Sarir and Messla oil fields in the Sirte Basin. Both deposits are among the largest in Libya and were discovered in 1961 and 1971, respectively. The British also intend to reopen their office in Tripoli by the end of the year.

Shell confirmed a similar agreement. The focus here is on examining exploration potentials, including the al-Atshan field. However, the projects are still in an early stage. According to NOC, both MoUs aim to increase productivity and thus contribute to Libya's economic stabilization.

Libya's oil production is currently around 1.3 million barrels per day. The NOC is pursuing the ambitious goal of increasing production to 2 million b/d - and has announced an exploration round for the first time since 2011. Numerous international companies, including Eni, OMV, and Repsol, have already expressed interest or are active again.

BP was involved in early oil discoveries in Libya in the 1950s but lost its assets after the nationalization in 1971. A comeback followed in 2007, until activities were halted again in 2011 with the outbreak of the civil war. In 2022, BP sold 50% of its shares to Eni, which took over operational leadership; exploration resumed in 2023.

The return of Western oil companies to a still-divided country – with rival governments in the East and West – highlights the growing international interest in previously untapped or dormant potential. The geopolitical risks remain high, yet the wealth of resources acts as a strong magnet.