TotalEnergies has signed an agreement extending the Waha oil concessions in Libya through December 31, 2050, securing a long-term foothold in one of the country’s most important producing areas and setting the stage for a new investment cycle.

The deal was signed on January 24 during the Libya Energy & Economy Summit in Tripoli by TotalEnergies Chairman and CEO Patrick Pouyanné, in the presence of Libyan Prime Minister Abdul Hamid Dbeiba. The extension introduces revised fiscal terms designed to support higher output from the mature but still prolific Waha assets.

The Waha concessions currently produce around 370,000 barrels of oil equivalent per day. Under the new framework, TotalEnergies and its partners plan to advance additional developments, most notably the North Gialo field, which is expected to contribute an incremental 100,000 boe/d once brought onstream.

The agreement reinforces TotalEnergies’ long-standing presence in Libya, where it has operated since 1956. Pouyanné described the extension as a natural fit with the company’s upstream strategy, highlighting the Waha assets’ low cost structure and comparatively low emissions intensity, characteristics that make them competitive within the company’s global portfolio.

The Waha concessions are held by Libya’s National Oil Corporation (NOC) with a 59.16% stake, alongside TotalEnergies and ConocoPhillips, which each hold 20.42%. Operations are carried out by Waha Oil Company, which is fully owned by NOC, reflecting Libya’s model of state-led resource management with international partners providing capital and technical expertise.

For Libya, the extension is significant as it underpins efforts to stabilize and grow oil output after years of political disruption and underinvestment. Incremental production from projects such as North Gialo could help offset natural declines elsewhere and support government revenues in a country heavily dependent on hydrocarbons.

In 2025, TotalEnergies’ net production in Libya averaged about 113,000 boe/d, sourced from a mix of offshore and onshore assets including Al Jurf, El Sharara, and Waha. The Waha extension, therefore, represents a material component of the company’s African upstream exposure.

The deal also comes amid a broader push by Libya to attract foreign investment back into its energy sector, as global producers weigh geopolitical risk against the country’s large, low-cost reserves. For international oil companies, long-dated concessions with clearer fiscal terms are critical to justifying capital-intensive developments.

TotalEnergies has increasingly emphasized maintaining production from advantaged oil and gas assets while channeling growth capital into low-carbon energy. The Waha agreement reflects this balancing act, allowing the company to sustain cash-generating upstream output while managing costs and emissions.

By Charles Kennedy for Oilprice.com

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