Libya is actively transforming its energy sector, tapping into its vast natural gas reserves. Recently, the National Oil Corporation (NOC) and Italy’s Eni signed an $8 billion deal.
This significant project aims to enhance gas supplies locally and in Europe by 2026.
Moreover, NOC rolled out an expansion plan with U.S.-based KBR. New gas blocks are available for the first time in 17 years.
Companies like Eni, TotalEnergies, and UAE’s ADNOC are keen on exploring these untapped reserves.
In another move, Zallaf for Oil and Gas awarded Honeywell a refinery contract. This $600 million project promises diversified petroleum products.
Shortly after, Prime Minister Abulhamid Dabaiba signed a decarbonization MOU with Eni. The focus is on reducing gas flaring and identifying more gas resources.
Furthermore, the Ministry of Oil and Gas ordered comprehensive mapping of the nation’s hydrocarbon reserves.
This initiative aims to help in the 2024 licensing round, which could boost oil production to two million barrels per day.
Libya’s Minister Mohamed Aoun also revealed that some parts of the country remain unmapped, indicating untapped potential.
Eni lifted the force majeure in August on three exploration areas near Wafa gas facilities. A new contract worth $1 billion was also given to Saipem by Mellitah Oil & Gas.
This deal centers on constructing a gas recovery module.
Post-Gaddafi
Post-Gaddafi, Libya’s energy sector has gained traction, confronting challenges and seizing opportunities.
Important landmarks include the 2024 licensing round and a potential gas pipeline to Egypt. Further, an office to streamline the sector was established in collaboration with KBR.
Besides, Honeywell secured another key refinery contract in Ubari. In the same vein, NOC and Russia’s Tatneft discovered oil at Ghadames Basin.
Also, El Sharara, a massive oilfield, has resumed operations, easing global market tensions.
Notably, Libya invited Turkish companies for offshore exploration.
Finally, the Libya Energy & Economic Summit aims to consolidate these gains and create new opportunities.
These actions indicate Libya’s energy sector’s brighter, more stable future.