Eni-led consortium spuds Libya’s first deepwater exploration well

Libya’s National Oil Corporation (NOC) and international partners have started drilling the country’s first deepwater exploration well in the Gulf of Sirte. The operation marks a new step in Libya’s offshore energy strategy and supports the country’s push to revive oil and gas exploration and boost production, Ecofin Agency reported on January 19.

The project in the offshore contractual area 38/3 is led by Italian integrated energy company Eni (BIT: ENI, NYSE: E) through its Eni North Africa unit in partnership with UK oil and gas major BP (LSE/NYSE: BP), Libya’s NOC and the Libyan Investment Authority (LIA).

According to local media outlets, the exploratory well, designated A1-38/3 and named “Amal Al-Matsoula” is located in water depths of roughly 1,900 metres. Drilling is expected to reach a total depth of about 4,500 metres beneath the seabed. Drilling operations are being conducted using a vessel operated by Italy’s engineering and construction group Saipem (BIT: SPM) specialising in offshore and onshore energy infrastructure.

The operator has not yet disclosed how long the drilling programme is expected to last or which specific geological structure is being tested. According to the NOC, the objective is to evaluate the potential for hydrocarbons in this deepwater part of the Gulf of Sirte.

Based on figures from the US Energy Information Administration (EIA), Libya possesses Africa’s biggest proven oil reserves, estimated at roughly 48 billion barrels and representing about 41% of the continent’s total. These resources are located largely onshore, mainly within the Sirte Basin in the northeast and the Murzuq Basin in the southwest.

Traditionally, Libya’s oil and gas operations have been concentrated onshore or in shallow offshore areas of the Gulf of Sirte. Offshore exploration is now slowly regaining prominence in the country’s energy policy, with the NOC in 2025 signalling plans to restart offshore activity and broaden the resource base.

According to the NOC, Libya recorded its highest average crude oil output over the past 10 years in 2025, with production averaging 1.374mn barrels per day (bpd). Total crude output for the year amounted to around 501mn barrels owing to improved operational stability at key oilfields and export terminals.

As recently reported by NewsBase, the recovery was supported by the launch of the first international licensing round in nearly 20 years and the strategic return of global majors with new agreements for exploration and technical studies.

Oil remains Libya’s dominant source of state revenue and foreign currency earnings, making production and export performance critical to fiscal stability. As Ecofin Agency reports, the NOC said in October last year it aimed to raise production to around 1.6mn bpd by the end of 2026.