Cyril Widdershoven
Dr. Cyril Widdershoven is a long-time observer of the global energy market. Presently he works as a Senior Researcher at Hill Tower Resource Advisors. Next…
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By Cyril Widdershoven – Jan 11, 2025, 2:00 PM CST
- Libya plans to offer 22 exploration blocks in 2025, attracting IOCs like Repsol, ENI, BP, and OMV.
- Russia’s growing military presence in Libya, following its removal from Syria.
- While Libya’s energy reserves present immense potential, IOCs face challenges from the volatile military-security environment.
After decades of low interest in Libya’s oil and gas sector due to sanctions and the civil war, a possible new chapter could open in 2025. Based on the potential tender by the Libyan National Oil Company (NOC) for 22 onshore and offshore exploration blocks, expectations are high that international oil companies (IOCs) are returning. Despite the current political and security instability, interest in Libya is growing, as evidenced by Spain’s Repsol, which is drilling its first exploration well. The main driver behind the IOC push is a security guarantee provided by the Libyan National Army (LNA) and NOC.
In December 2024, NOC announced plans to offer 22 onshore and offshore exploration blocks in 2025 to attract foreign investment and bolster the country’s energy sector. Libya’s current production levels remain far below its targets. The country claims to hold reserves of 48 billion barrels and aims to increase production to 2 million bpd in 2025, up from the current 1.5 million bpd in 2024.
Repsol began drilling its A1-2/130 exploration well on December 31, 2024, 12 kilometers from Libya’s largest oil field, Sharara. Repsol is committed to drilling six wells in its NC115 and NC186 license areas in the southwestern Murzuq basin. Concurrently, Italian major ENI and British major BP have also initiated exploration projects in partnership with the Libyan Investment Co. in Area B of the Ghadames Basin, northwest Libya. Exploration drilling at well A1-96/3 (Hasheem Prospect) is tied to the 2007 Type IV Contracting Agreement.
ENI and NOC, both partners in the 50/50 JV Melittah Oil & Gas, are overseeing drilling activities based on their experience in the Al Wafa field. NOC has stated that promising geological formations will be tested at well A1-96/3, with the final well expected to reach 3,147 meters (10,327 feet). Meanwhile, Austrian energy company OMV is currently working in the Sirte Basin. A JV involving NOC, OMV, Equinor, TotalEnergies, and Repsol, known as Akakus, is operating the Sharara oil field, aiming to boost production by around 260,000 bpd. Sharara’s production capacity is set at 320,000 bpd.
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The optimism shown by IOCs and Libya’s NOC may, however, face geopolitical risks of significant magnitude. While Libya’s overall security situation is relatively stable, regional developments, especially involving Syria,