A consortium involving Spain’s Repsol, Türkiye Petrolleri A.O. and Hungary’s MOL Group has signed a production sharing agreement for Libya’s offshore O7 block, clearing the way for hydrocarbon exploration in the Mediterranean.
The agreement follows the award of an exploration licence for the block, which lies around 140 kilometres northwest of Benghazi. The area covers more than 10,300 square kilometres and includes deepwater acreage where sea depths exceed 1,500 metres.
Repsol will operate the project with a 40% stake, while Türkiye Petrolleri A.O., known as TPAO, will also hold 40%. MOL Group will take the remaining 20%.
Under the minimum work programme, the joint venture is expected to carry out 1,500 kilometres of 2D seismic surveys and 2,300 square kilometres of 3D seismic surveys. The programme also includes one exploration well.
The deal marks another step in Libya’s attempt to revive international upstream activity after years of disruption linked to political instability and uncertainty over the country’s oil sector. Libya’s National Oil Corporation reopened its first licensing round in 17 years in 2025, offering exploration areas both onshore and offshore.
For MOL, the agreement expands its international exploration portfolio into a North African offshore project. For TPAO, it adds to Turkey’s growing energy activity in the wider Mediterranean, while Repsol brings operator experience in Libya and offshore exploration.
The signing of the production sharing agreement provides the legal framework for the consortium to move from licence award to exploration activity in one of the offshore areas included in Libya’s renewed push to attract foreign energy investment.
Source: CNA
