ExxonMobil Inks MoU With NOC to Reenter Libya After Decade-Long Hiatus

Exxon Mobil Corporation XOM has signed a memorandum of understanding (MoU) with Libya’s National Oil Corporation (“NOC”), marking the U.S. energy major’s return to the North African nation after more than a decade of inactivity due to political instability and security concerns, per a Reuters report.

XOM to Conduct Hydrocarbon Studies in Libya

Under the newly signed MoU, ExxonMobil and NOC will collaborate on detailed geological and geophysical studies aimed at identifying hydrocarbon resources across four offshore blocks off Libya’s northwest coast and in the Sirte Basin. The agreement signals a potential revival of foreign investment in Libya’s upstream oil sector, which has struggled with repeated disruptions since 2014.

XOM’s 2013 Exit Amid Security Challenges

ExxonMobil had significantly scaled back its Libyan operations in 2013 due to worsening security conditions and uncertain returns. International oil companies, including ExxonMobil, became increasingly cautious following the 2011 NATO-backed uprising that toppled Muammar Gaddafi, leaving the country divided between rival eastern and western authorities.

Potential Boost for Libya’s Oil Sector

Libya, home to Africa’s largest proven oil reserves, has seen its output frequently disrupted over the past decade. The ExxonMobil-NOC partnership could pave the way for renewed exploration and eventual production, supporting Libya’s efforts to stabilize and expand its energy sector amid ongoing political complexities.

XOM’s Zacks Rank and Key Picks

XOM currently carries a Zacks Rank #3 (Hold).

Investors interested in the energy sector may look at a couple of better-ranked stocks like Antero Midstream Corporation AM, Delek Logistics Partners, LP DKL and Enbridge Inc. ENB, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Antero Midstream generates stable cash flow by providing midstream services under long-term contracts with Antero Resources. The company prioritizes debt reduction by effectively utilizing free cash flow after dividends. Antero Midstream’s higher dividend yield compared to its sub-industry peers reflects its commitment to generating shareholder returns.

AM’s earnings beat estimates in one of the trailing four quarters, met once and missed in the other two, delivering an average negative surprise of 5.50%.

Delek Logistics owns, operates, acquires and constructs crude oil and refined products logistics and marketing assets. DKL operates crude oil transportation pipelines, refined product pipelines, crude oil gathering systems and associated crude oil storage tanks.

Delek Logistics’ earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 79.8%. The Zacks Consensus Estimate for DKL’s 2025 earnings indicates 30.43% year-over-year growth.

Enbridge is a major energy company that owns the longest and most complex oil and gas pipeline system in North America, transporting about 20% of the natural gas used in the United States. The business earns steady fees through long-term contracts, protecting it against big oil price swings or changes in shipment. 

ENB’s earnings beat estimates in two of the trailing four quarters, met once and missed in the other, delivering an average surprise of 0.28%.

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