Hungarian oil and gas company MOL Group has entered into a production sharing agreement with Repsol and Türkiye Petrolleri A. O. (TPAO) covering offshore hydrocarbon exploration in Libya.

The agreement, signed following the granting of an exploration licence, enables the consortium to proceed with activities in the O7 block in the Mediterranean Sea.

The joint venture (JV) includes Repsol acting as operator with a 40% stake, TPAO holding 40% and MOL Group 20%.

Earlier this year, the group submitted a successful bid for the O7 block located approximately 140km north-west of Benghazi. The acquired block covers more than 10,300km² and lies in water depths surpassing 1,500m.

Planned work on Block O7 is set to involve the collection of 1,500km of 2D seismic data, 2,300km² of 3D seismic data and the drilling of one exploration well.

The companies stated that the deepwater characteristics of the area match the consortium’s previous offshore experience.

MOL Group exploration and production executive vice-president Zsombor Marton said: “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 revitalisation 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.”

MOL Group entered the Libyan market through a strategic partnership with the National Oil Corporation announced in January 2026.

The partnership aims to foster expertise sharing, expand technological cooperation and explore new business opportunities in the oil and gas sector.

In January this year, MOL Group signed a heads of agreement with Gazprom Neft to acquire the latter’s 56.15% stake in Naftna Industrija Srbije for an undisclosed price.