Trio sets the stage for Mediterranean Sea oil & gas exploration with North African PSA

June 16, 2026, by Melisa Cavcic

Three joint venture (JV) partners – MOL Group, Repsol, and Türkiye Petrolleri A.O. (TPAO) – have signed a production sharing agreement (PSA) for an offshore exploration area in the Mediterranean Sea, off the coast of Libya.

After Repsol (40% interest as operator), TPAO (40%), and MOL Group (20%) submitted a joint bid for the O7 offshore block and secured the right to conduct hydrocarbon exploration by being granted an exploration licence, the three companies proceeded to ink a production sharing agreement. The trio believes that the deal marks a key milestone in advancing exploration activities in Libya.

This step is perceived to enable the advancement of a North African offshore project, which is expected to contribute to the revitalization of Libya’s oil and gas industry, while being interpreted as a strategic milestone for Central Eastern Europe’s energy security.

Zsombor Marton, Executive Vice President of MOL Group Exploration and Production, commented: “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 honoured 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.”

Covering more than 10,300 square kilometers in water depths exceeding 1,500 meters, the O7 block is located approximately 140 kilometers northwest of Benghazi. The block’s deepwater setting is said to align with the consortium’s extensive offshore experience.

The minimum work commitment for Block O7 includes the acquisition of 1,500 kilometers of 2D and 2,300 square kilometers of 3D seismic data, alongside the drilling of one exploration well.

This comes after MOL launched a new strategic partnership with Libya’s National Oil Corporation (NOC) in January 2026, marking a significant step toward expanding international cooperation in the oil and gas sector.

The partners aim to exchange expertise, deepen technological cooperation, and identify new business opportunities that strengthen both organizations’ international presence and future growth. Other players also inked deals with Libya’s NOC, including Chevron.