The National Oil Corporation of Libya (“NOC”) continues its global outreach to promote the country’s first international upstream licensing round in over 15 years.

As the 15 May 2025 deadline for announcing qualified bidders approaches, international oil companies (IOCs) are urged to prepare for critical next steps in the bidding process.

Recent roadshows in London and Istanbul provided pivotal insights into Libya’s evolving Exploration and Production Sharing Agreement (“EPSA”) framework and upcoming key dates. These events also reinforced the NOC’s commitment to making Libya an attractive destination for upstream investment.

Key Takeaways from the Roadshows

Progressive Cost Recovery Mechanism:
The EPSA model under this bid round introduces a two-tier “bucket” cost recovery system:

  • First Bucket: A fixed percentage of the IOC’s production share will be allocated for cost recovery.
  • Second Bucket: A portion of the profit share will contribute to cost recovery, calculated using the “R Factor” (Cumulative Revenue / Cumulative Costs) and applied to a pre-agreed A Factor range.

This mechanism aims to boost the commercial appeal of the new EPSA structure and enhance returns for participating IOCs.

Data Room Access and Clarifications Timeline:

  • 15 May 2025: NOC will announce the list of qualified bidders. Selected IOCs will sign a Letter of Understanding and Confidentiality Agreement.
  • 19 May – 17 July 2025: Qualified IOCs will access the virtual data room for technical, legal, and commercial review.
  • 20 May – 14 August 2025: A formal clarifications period will be open for IOCs to propose changes or raise queries on EPSA terms.
  • 28 August 2025: NOC will issue any accepted amendments to the EPSA model contract.

Bid Preparation and Submission Period:

  • 20 May – 14 November 2025: Bidders will prepare submissions.
  • Week of 15 November 2025: Final bid submissions.
  • 22 – 30 November 2025: EPSA contract signings.

Supporting IOCs During the Next Phase
Eltumi Partners remains available to support IOCs throughout the bid process. Our team can assist with:

  • Reviewing and commenting on the EPSA model.
  • Advising on strategic improvements to the contractual framework.
  • Navigating the dual cost recovery structure.
  • Structuring and preparing competitive bids.

For further information or to explore how we can support your bid, please contact us on enquiries@eltumipartners.com. For more updates, follow Eltumi Partners on LinkedIn.