Libya plans to increase oil production to two million barrels per day (bpd) within the next three years, planning a 100,000 bpd increase in 2024 alone. The country’s efforts to stimulate long-term economic growth are underpinned by new investments in oil and gas, and Minister Aoun will provide insight into the various strategies the country has initiated to encourage investment during the AEW conference this November.
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Libya is set to launch an international tender in 2024 aimed at stimulating exploration in the Sirte, Murzuq and Ghadames basins. Representing the first in the country since 2005, new blocks will be offered as part of a strategic partnership with engineering and advisory firm KBR. The country’s state-owned National Oil Corporation (NOC) is also set to launch a domestic bid round, aimed at enticing local private players to invest in upstream oil and gas. The round will feature two types of contracts – a services contract and a production sharing contract – and falls part of efforts to develop 45 greenfield and brownfield oil and gas projects. Insight into these licensing rounds will be offered during AEW 2024, where Minister Aoun will discuss upstream investment opportunities and competitive fiscal terms.
The government also launched a Strategic Programs Office in February 2023 to spearhead the implementation of the revitalization of the oil and gas sector. The office is tasked with improving transparency and coordination across the market. Additionally, to support geological understanding and attract investment, a mandate was issued for the NOC to conduct an extensive mapping of the country’s hydrocarbon reserves.
Meanwhile, the government’s commitment to engaging with international oil companies to expand the hydrocarbon market has already culminated in various milestones being achieved. Libya’s NOC and oil and gas company Tatneft discovered oil in Area 82 of Block 4 in 2023; energy major Eni revoked force majeure status at three oil and gas exploration sites; Algeria’s Sonatrach resumed exploration in the country; while production resumed at the El Sharara oilfield in July 2023 – one of the country’s largest oil deposits. The NOC signed an $8 billion gas deal with Eni in January 2023 for the development of the Structures A&E project, aimed at increasing the supply of gas to European markets. Representing the first major project in Libya since 2008, the project will add 750 million cubic feet of gas per day to the country’s portfolio.
Several contracts have also been awarded in recent months, including a $1 billion deal to engineering and services firm Saipem for a 5,000-ton Gas Recovery Module; a contract to multinational refinery manufacturing company Honeywell Universal Oil Products for the construction of the South Refinery; and a turnkey contract to global technology company SLB for the drilling of three wells.
Libya is also spearheading efforts to facilitate a just energy transition, one that hinges on low-emission oil and gas. A deal was signed with Eni in 2023 to advance the decarbonization of the sector, with parties agreeing to collaborate on research, technological development and the establishment of business cases. Eni signed a second deal with the government to enhance cooperation in the area of gas flaring reduction and the identification of additional gas resources from existing fields.
“Libya is making a strong play for foreign investment and other African nations stand to learn a great deal from the country’s ambitious and forward-looking approach. With over 48 billion barrels of proven oil reserves and 53 trillion cubic feet of proven natural gas, the country has already established itself as a top global supplier. As a new wave of investment flows into the country on the back of economic stability, upcoming licensing rounds and partnerships, Libya is poised to play a major role in facilitating regional energy security,” states NJ Ayuk, Executive Chairman of the African Energy Chamber.
Distributed by APO Group on behalf of African Energy Chamber.
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