Hungary's MOL Group and its joint venture partners Repsol and Türkiye Petrolleri A.O. (TPAO) have signed a production sharing agreement for a deepwater offshore exploration block in Libya's Mediterranean waters, advancing plans for oil and gas exploration in the North African country.
The agreement follows the consortium's successful bid earlier this year for the O7 offshore block, where Spain's Repsol will act as operator with a 40% interest. TPAO also holds 40%, while MOL Group has a 20% stake.
The O7 block covers more than 10,300 square kilometers in water depths exceeding 1,500 meters and is located approximately 140 kilometers northwest of Benghazi.
The consortium's minimum work program includes the acquisition of 1,500 kilometers of 2D seismic data, 2,300 square kilometers of 3D seismic data and the drilling of one exploration well.
The project marks a new phase in Libya's efforts to revive offshore oil and gas exploration and comes as international energy companies seek to expand exploration activity in frontier deepwater basins.
"We are excited that our joint project with Repsol and TPAO has entered a new phase with the signing of a production sharing agreement. This also means a new milestone in the revitalization of Libya’s oil and gas industry and we are honored to be part of it.
"Libya holds strategic importance for Europe and offers an exceptional offshore exploration opportunity in North Africa. We are committed to contributing our expertise to Libya’s economy, while also strengthening the energy security of Central Eastern Europe through a new source,” said Zsombor Marton, Executive Vice President of MOL Group Exploration and Production.
The agreement follows the strategic partnership signed in January 2026 between MOL Group and Libya's National Oil Corporation (NOC), aimed at expanding cooperation in the oil and gas sector and identifying new upstream opportunities.