Libya Reopens Its Oil Patch and Big Oil Shows Up
Foreign majors have recently made steps to return to operations in Libya.
BP and Eni, for example, returned to Libya last year after a decade of avoiding the country amid its civil war.
Per a statement by the NOC of Libya, Italy’s Eni resumed exploratory drilling in the Ghadames Basin in October 2024. The company operates the exploration block where it is drilling in partnership with BP and the Libyan Investment Authority—the country’s sovereign wealth fund.
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This year, NOC signed agreements with BP and Shell to explore and evaluate the oil and gas potential of several fields. BP will conduct studies to assess the potential for exploration and production in the Messla and Sarir fields, as well as in some surrounding exploration areas. Shell, for its part, will evaluate prospects and conduct a comprehensive technical and economic feasibility study to develop the al-Atshan field and other fields fully owned by the NOC.
Exxon also signed a preliminary deal for exploration at four offshore blocks in Libya. At the signing of the agreement, NOC said that “It is worth noting that ExxonMobil was one of the companies that expressed interest in participating in the public bidding round initiated by the NOC for exploration in Libya, which includes 22 offshore and onshore blocks available for investment.”
Chevron is also considering opportunities in Libya, chief executive Mike Wirth said on the supermajor’s investor day earlier this month.
“The thing that is interesting today is, there are a number of opportunities out there in terms of new country entries. We've had discussions underway that have been reported in the media, so I can acknowledge these in Libya,” Wirth told analysts.
Libya Looks to Advance Strategic Partnership with U.S.
Simultaneously with the first bid round in nearly two decades, Libya is pitching its oil industry to the U.S. as an alternative to Russian oil and solving the problem with Haftar’s army controlling areas in the country containing critical reserves and infrastructure, Libyan officials told the Financial Times during last week’s visit to Washington.
“We have a problem,” senior Libyan official Mahmoud Ahmed Alfiste told FT, noting that while NOC is recognized as the only legitimate entity as a custodian of Libya’s production and exports, “Haftar and his sons are controlling” areas with some critical reserves.
Libya’s Finance Minister, Khaled Al-Mabrouk, who was part of the delegation on the visit to the U.S., said, “We look forward to substantial and sustained dialogue with our U.S. partners to invest in Libya's transformation and to join in supporting a unified, stable Libya that benefits both countries’ strategic interests and the stability and growth of the wider region.”
The return of Big Oil to Libya suggests international majors believe in Libya’s potential and could be the first step toward the economic revival in the North African oil producer and exporter.
By Tsvetana Paraskova for Oilprice.com
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