TPAO Wins Libya Oil and Gas Bid in Strategic Expansion

Turkey’s state-owned energy company TPAO has won exploration rights in Libya for both offshore and onshore hydrocarbon fields, marking a significant step in Ankara’s expanding international energy strategy. The development was announced by Energy and Natural Resources Minister Alparslan Bayraktar, who described the move as part of a broader effort to strengthen Turkey’s global energy presence and long-term supply security.

In his statement, Bayraktar said, “We are now moving the local and national steps we have taken in energy into a new phase in cross-border exploration fields. Our national oil company, TPAO, has earned the right to conduct hydrocarbon exploration activities both offshore and onshore through its bid in the Libyan oil and natural gas tender.”

The agreement reflects Turkey’s growing emphasis on diversifying its energy portfolio, expanding its overseas exploration footprint, and reinforcing energy security through strategic international partnerships.

Offshore Exploration Block Near Benghazi

As part of the winning bid, TPAO will operate offshore in a consortium with Spain’s Repsol and Hungary’s MOL Group. Together, the three companies will explore a strategically located offshore block in the Mediterranean Sea near Benghazi. The licensed area covers approximately 10,300 square kilometers and offers substantial hydrocarbon potential in a region that has become increasingly important in global energy discussions.

Bayraktar explained the structure of the partnership, stating, “TPAO will carry out its offshore activities in Libya through a consortium structure formed with Repsol and MOL Group. The consortium will conduct hydrocarbon exploration in a block of approximately 10,300 square kilometers located off the coast of Benghazi, which holds a strategic position in the Mediterranean.”

The Eastern Mediterranean has emerged as a focal point for energy exploration in recent years, driven by its untapped reserves and strategic maritime routes. By partnering with experienced European energy companies, TPAO enhances its technical capacity while sharing operational and financial risks in a complex offshore environment.

This move positions Turkey more prominently in the evolving Mediterranean energy landscape, where exploration activities are closely watched by global markets.

Onshore Exploration in the Sirte Basin

Beyond offshore drilling, TPAO will also conduct onshore exploration in Libya’s Sirte Basin, one of the country’s most productive oil regions. In this segment, TPAO will partner directly with Repsol to explore a licensed area covering approximately 8,200 square kilometers.

Bayraktar highlighted the geological importance of the region, stating, “Onshore, TPAO will carry out exploration activities together with Repsol in the licensed area within the Sirte Basin. In this region, which is one of Libya’s most productive hydrocarbon basins, we will evaluate new discovery opportunities in an area of approximately 8,200 square kilometers.”

The Sirte Basin has historically accounted for a significant share of Libya’s oil output. Access to this region could unlock new exploration opportunities and, if commercially viable reserves are discovered, contribute to future production.

Advancing Turkey’s Energy Security Strategy

Turkey has long sought to reduce its dependency on imported energy by investing in domestic resources and expanding its international exploration portfolio. The Libya agreement continues that policy, combining national technical expertise with global operational experience.

Bayraktar emphasized this broader vision, saying, “By combining our advanced exploration and production capabilities in offshore and onshore fields with the global field experience of our international partners, we aim to create technically and commercially sustainable value in locations with high potential. While strengthening TPAO’s global position with our diversified international exploration portfolio, we are resolutely continuing our steps that support our energy supply security and enhance our institutional capacity.”

This approach underlines Turkey’s commitment to building long-term energy resilience through calculated investments abroad. Rather than relying solely on imports, the country is working to secure stakes in upstream projects that may provide future supply flexibility.

Strategic and Economic Implications

Libya possesses Africa’s largest proven oil reserves and remains a critical player in Mediterranean energy geopolitics. For TPAO, entering both offshore and onshore Libyan blocks expands its international reach and aligns with Turkey’s broader diplomatic and economic engagement in the region.

The partnership with Repsol and MOL Group brings international credibility and advanced technical know-how to the projects. Offshore exploration, particularly in deep or complex waters, requires sophisticated seismic technology and drilling expertise. Joint ventures such as this allow companies to pool knowledge and resources while managing financial exposure.

While exploration does not immediately translate into production, the awarded licenses establish a framework for potential future development. Should viable reserves be identified, the projects could progress into production-sharing agreements, infrastructure development, and long-term export planning.