Libya's Oil Sector Booms with Recent Discoveries
Libya's National Oil Corporation (NOC) has announced a significant oil discovery in the Ghadames basin, a region in the country's northwest near the Libyan-Algerian border. The subsidiary Arabian Gulf Oil Company (ACOGO) made the find in well H1-NC4, which is estimated to produce around 4,675 barrels of crude oil and 2 million cubic feet of gas daily. This discovery comes on the heels of another recent announcement by the Libyan subsidiary of Austrian energy firm OMV, who found a substantial oil reserve in Block 106/4 of the Sirte Basin, one of the world's top petroleum provinces.
The exploration well, as per NOC's statement, is producing over 4,200 barrels of oil per day and is expected to produce more than 2.6 million cubic feet of gas daily. This marks OMV's first discovery in Block 106/4, which they operate under an Exploration and Production Sharing Agreement (EPSA) signed in 2008 with the NOC. OMV had been absent from Libya for over a decade, having suspended operations in 2011 following the toppling of Muammar Gaddafi and the subsequent civil war. However, the security situation in Libya has improved, allowing foreign oil and gas companies to resume exploration activities.
This positive development in Libya's oil sector is mirrored by the return of other major players. Algerian state energy firm Sonatrach resumed oil and gas exploration in the Ghadames basin in mid-October, and Italy's Eni has also returned to the offshore area northwest of Libya after a five-year hiatus. Furthermore, NOC signed agreements with supermajors BP and Shell in July to explore and assess the oil and gas potential of several fields in the country, further solidifying the return of 'Big Oil' to Libya.
These recent discoveries and the return of major energy companies to Libya highlight the country's potential as a significant player in the global energy market, despite the challenges it has faced in recent years.
