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“This MoU establishes a geological and geophysical study to identify the hydrocarbon resources in these blocks,” the corporation stated, adding it “paves the way for cooperation and the resumption of the partnership between NOC and ExxonMobil, which aims to restart its activities in Libya after a decade-long hiatus.”

The US company had previously signed an Exploration and Production Sharing Agreement with Libya in 2007 to explore four offshore blocks in the Sirte Basin, covering approximately 2.5 million acres. However, in 2013, they scaled back operations, citing security risks and unreliable returns amid escalating instability. The oil-rich country has remained fractured and volatile since the NATO-backed 2011 uprising that ousted and killed longtime leader Muammar Gaddafi.

Libya holds Africa’s largest proven oil reserves, with an estimated 48 billion barrels – representing 41% of the continent’s total as of 2024 – according to the US Energy Information Administration.

Last month, NOC launched an energy exploration tender – its first major licensing round in nearly 18 years – in a bid to revive its oil sector, which has faced repeated disruptions from militia violence and political rivalries.

An official told Bloomberg that 37 international oil majors, including US multinational Chevron, French energy giant TotalEnergies, and Italy’s Eni, were participating in the public licensing round. On Monday, NOC confirmed that ExxonMobil was among those that expressed interest in the bid, which include 22 offshore and onshore blocks for exploration.

Masoud Suleman, chairman of the NOC Board of Directors, said the terms of the latest deal with the world’s largest publicly traded energy company are now “more favorable” than in the past.