7 Oil & Gas Developments in Libya After Gadafi
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Lists - August 16, 2023

7 Oil & Gas Developments in Libya After Gaddafi

The oil and gas sector in Libya has experienced some revival and reformation in the wake of the post-Gaddafi era. 

The country’s energy landscape has witnessed a series of pivotal developments that aimed to harness its vast hydrocarbon resources for national growth and stability. 

From new exploration endeavours to strategic partnerships, Libya’s journey in the oil and gas realm unfolded with a blend of challenges and opportunities. 

In this exploration, we uncover significant oil and gas developments that have shaped Libya’s path after the Gaddafi era, highlighting the dynamic interplay between industry dynamics, geopolitical shifts, and the nation’s aspirations for a prosperous future.

Announcement of the 2024 licensing round

One such development was when Libya’s National Oil Corporation (NOC) announced that it planned to launch an oil and gas licensing round in 2024. This comes as part of plans to accelerate its oil and gas exploration.

NOC’s Chairman, Farhat Bengdara explained that the licensing would help Libya reach oil production of two million barrels per day (bpd) over the next three years. He also hinted at the possibility of establishing a natural gas liquefaction plant and a gas pipeline to Egypt with links to the Edku facility and the Damietta terminals. 

Honeywell UOP Secures Refinery Contract

Another notable development is the contract awarded by  Zallaf Libya Oil and Gas – a subsidiary of the NOC,  to multinational refinery manufacturing company Honeywell Universal Oil Products for the construction of the South Refinery in the town of Ubari.

Announced by the NOC in March 2023, the refinery project will be developed in two phases at an estimated cost of between $500 million and $600 million.

NOC, Tatneft Discover Oil at Ghadames Basin

The list will not be complete if we don’t mention the oil discovery made by the NOC and Tafneft, a Russian vertically integrated oil and gas company. 

The discovery which represented the third oil discovery in Libya is located in the Ghadames Basin onshore Libya.

NOC’s Strategic Programs Office

Earlier this year, the NOC established a Strategic Programs Office in collaboration with U.S.-based engineering firm Kellogg Brown & Root. The office will oversee the strategic plan to revitalise Libya’s oil and gas sector.

It will also improve transparency and coordination across the sector under efforts of increasing investment, exploration and production.

Resumption of production at El Sharara Oilfield

After months of shutdowns due to political disruptions in Libya, El Sharara Oilfield in the country resumed production in July 2023. This is a huge development because the El Sharara oilfield represents one of Libya’s biggest deposits.

The oilfield’s resumption is expected to bring some relief to global markets with a production of 250,000 to 260,000 barrels per day.

Libya signs MOU with Italian Eni

Libya also signed a memorandum of understanding with Eni, an Italian energy major. The MOU will see both parties collaborate on research, technological development and the establishment of business cases to advance the decarbonization of the energy sector.

The Prime Minister of Libya Abdul Hamid Dbeibeh signed the MOU during a state visit to Italy. The agreement aims to meet the increasing local and export demand for gas while also assessing prospects for renewable energy and implementing energy efficiency measures.

Call for partnership issued to Turkish companies

Libya’s Minister of Oil and Gas Mohamed Aoun recently invited Turkish companies to partner with Libya and help develop the country’s unexplored offshore acreage. His invitation was premised on Turkey’s expertise and geographical proximity. 

Speaking on the invitation, Aoun explained that partnering with Turkish companies will play an important role in advancing exploration and seismic research.

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