Libya's NOC signs unified operating agreement for Murzuq Basin oil field

Libya's state-run energy utility, the National Oil Corporation (NOC), has signed a unified operating agreement for the I/R field within the concession areas NC 115 and NC 186 in the Murzuq Basin, south-western Libya, Libya Herald reported on June 10.

The unified operating framework is expected to streamline decision-making and coordination among the consortium partners, supporting efforts to optimise output from the shared asset.

The agreement was signed by Akakus Oil Operations alongside international energy majors TotalEnergies (EPA:TTE), Repsol (MSE:REP), Equinor (OSE:EQNR), and OMV (VSE:OMV).

The NOC said the deal "strengthens the strategic partnership and consolidates the foundations of joint cooperation to develop operations and achieve the highest levels of operational efficiency," according to Reuters. Backed by a newly allocated LYD 12bn ($2.5bn) development budget, NOC is executing a strategic revitalisation plan to boost crude production from its current 1.43mn barrels per day to 1.6mn by the end of 2026, with an ultimate target of 2mn barrels per day by 2030.

The Murzuq Basin is one of Libya's key hydrocarbon-producing regions. Covering roughly 350,000 square kilometres in southwestern Libya, the basin is one of the country's most vital hydrocarbon regions and home to El Sharara, Libya's largest onshore oil field, with a production capacity of roughly 300,000 barrels per day. The new agreement supports operations of major European energy companies in Libya's upstream sector despite the country's longstanding political and security challenges.