The Financial Times reported on Tuesday that BP and Shell are entering into several agreements aimed at exploring new opportunities in Libya, as international oil companies ramp up their return to the country.
The paper emphasized that while Libya remains one of Africa’s largest oil producers, it has suffered from underinvestment due to the withdrawal of major oil companies amid the country’s conflict.
Shell confirmed that it has signed a memorandum of understanding (MoU) with Libya’s National Oil Corporation (NOC) to study opportunities for oil and gas production, although Shell’s plans are understood to still be in early stages.
The report added that the NOC aims to increase Libya’s oil production from the current 1.3 million barrels per day to 2 million barrels per day — a longstanding goal that would surpass the peak of 1.75 million barrels per day reached in 2006. The NOC has also launched its first licensing round for new exploration rights since 2011, with reports indicating strong interest from multiple international companies.
According to the newspaper, under its agreement, BP will assess the potential redevelopment of two old oil fields, as well as the exploration of nearby areas.
The memorandum of understanding was described as a “potentially significant addition” to BP’s operations in Libya, according to the Financial Times.
