Indian firms announce oil, gas discovery in Libya's Ghadames Basin

Indian energy companies have announced a new oil and gas discovery in Libya’s Ghadames Basin, adding to the country’s overseas energy portfolio amid volatile global crude markets and tensions in West Asia, The Hindu reported on April 28.

The announcement comes as oil markets remain on edge over potential supply disruptions in the Strait of Hormuz, helping lift Brent crude to $110 a barrel this week.

State-run Indian Oil Corporation and Oil India said the discovery was made in Libya’s Area 95/96 block within the Ghadames Basin, a hydrocarbon-rich region in the country’s south-west. Both companies said further appraisal and reservoir evaluation would now be carried out to determine recoverable reserves and assess the project’s commercial viability before development decisions are made.

The 6,600-square-kilometre block is operated by Sonatrach International Petroleum Exploration and Production Corporation as part of a consortium that includes the two Indian firms. The consortium had planned eight exploratory wells in the block, with five already completed. The latest find came during drilling of the sixth well after exploration activities resumed in the region.

According to company statements, Libya’s National Oil Corporation (NOC) has formally recognised the well as a new hydrocarbon discovery. The well was drilled to about 8,440 feet and, during testing, produced around 13mn cubic feet of natural gas per day alongside 327 barrels of condensate per day from the Awynat Wanin and Awyn Kaza formations, according to India’s Ministry of Petroleum and Natural Gas.