AfrOil: Eni, BP and other international oil groups resume exploration activities in Libya

Libya’s National Oil Corporation (NOC) announced the resumption of exploration activities by Italy’s Eni and Britain’s BP, marking the end of an onshore drilling pause since 2014, the Libya Observer reported on October 27.

In addition, Spain's Repsol is preparing to resume operations in the Murzuq Basin, while Austria's OMV plans to start drilling in the Sirte Basin within weeks.

Eni’s resumption plan includes commencing exploration in Area B (96/3) of the Ghadames Basin – drilling the first exploratory well, A1-96/3 (Wildfire Hope), under the 2007 Type IV Contracting Agreement – in partnership with BP and the Libyan Investment Company.

Meanwhile, Mellitah Oil & Gas is managing the drilling operations for well A1-96/3, leveraging its experience in developing the nearby Al Wafa field. The exploratory well A1–96/3, located around 35 km from the Wafa field and approximately 650 km from Tripoli, will test promising geological formations expected to contain oil and gas. Plans are to drill to a depth of roughly 10,327 feet (3,147 metres).

Earlier in October, NOC announced the drilling of five new wells, adding around 12,000 barrels per day (bpd) to production capacity

Oil production expansions are expected to come from the Gialo-III project, while the North Gialo and NC-98 oil field development projects and the Structures A&E gas project are expected to come online in 2025.

After the appointment of the new central bank administration and the resumption of oil production and exports earlier this month, Libya is now open to attracting more foreign investment as it intends to introduce changes to its fiscal regime for oil and gas investments. Libya has nearly 48bn barrels in reserves, nearly 80% of which are in the eastern part of the country. The NOC announced a capacity expansion plan to reach two million bpd in three to five years.

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