TotalEnergies SE Secures Long‑Term Growth Leveraging Libya Deal and Waha Concessions
TotalEnergies SE, the French‑based integrated energy giant, has fortified its upstream portfolio with two strategically significant agreements announced on 24 and 25 January 2026. The first, a 25‑year oil development pact with the Libyan government, is poised to inject more than USD 20 billion into the company’s exploration and production pipeline. The second, an extension of the Waha concessions through 2050, reaffirms the firm’s commitment to the North‑African market and extends its access to critical gas reserves.
Libya Agreement: A 25‑Year, USD 20 Billion Commitment
During the Libya Energy Economy Summit in Tripoli, TotalEnergies, in partnership with ConocoPhillips, signed a landmark 25‑year contract to develop Libyan oil fields. The deal, valued at over USD 20 billion, is expected to generate cumulative revenues of approximately USD 370 billion over the life of the agreement. The investment covers both exploration and production activities, positioning TotalEnergies to capture a substantial share of Libya’s untapped hydrocarbon resources as political stability and security frameworks continue to strengthen.
This agreement aligns with TotalEnergies’ broader strategy of securing long‑term supply chains in geopolitically sensitive regions. By aligning its interests with the Libyan state, the company not only gains access to a productive basin but also contributes to the country’s economic reconstruction, thereby enhancing its social license to operate.
Waha Concessions Extended to 2050
On 26 January 2026, TotalEnergies announced the extension of its Waha concessions, a move that guarantees continued operational rights and regulatory support until 2050. The Waha field remains a pivotal asset in the company’s exploration portfolio, and the extension underscores the confidence of both TotalEnergies and the Libyan authorities in the field’s long‑term viability. By securing an extended concession period, TotalEnergies mitigates the risk of mid‑stream disruptions and solidifies its position as a key partner in Libya’s energy infrastructure.
Impact on Financial Position
With the Libyan deal and the Waha concession extension, TotalEnergies is set to enhance its cash flow profile and sustain a robust dividend policy. The company’s market capitalization of €124 billion and a price‑earnings ratio of 10.33 suggest that investors are already pricing in the value of these long‑term contracts. The new agreements will likely support TotalEnergies’ 2026 earnings forecasts and strengthen its balance sheet, providing a cushion against volatile commodity cycles.
Forward‑Looking Outlook
TotalEnergies’ dual focus on large‑scale investments and secure contractual frameworks positions the company to navigate the evolving energy transition. While the firm remains an integrated oil and gas operator, the Libyan partnership signals a continued commitment to traditional hydrocarbons, balanced by its other segments in gas, renewables, and power. As the world moves towards decarbonisation, these long‑term agreements afford TotalEnergies the flexibility to allocate capital between conventional and low‑carbon opportunities, ensuring resilience and sustained shareholder value in the coming decade.
