The American Bloomberg Agency reported today, Wednesday, citing the National Oil Corporation (NOC) of Libya, that Chevron and TotalEnergies are competing in the first oil exploration bid in Libya since the conflict in 2011, aiming to help increase production.
Masoud Suleiman, Chairman of the Board of the National Oil Corporation, said in an interview with Bloomberg that Eni and ExxonMobil are among 37 companies that have shown interest, with contracts expected to be signed with bidders by the end of 2025.
He added that almost all well-known global companies are competing for 22 offshore and onshore blocks, and the return of foreign companies to exploration would mark a turning point for Libya, which is home to the continent’s largest reserves but whose production has been disrupted due to more than a decade of conflict.
In response to Bloomberg’s question: Why are two governments in Libya competing for control of the oil?
According to the agency, a representative of TotalEnergies declined to comment, and Eni and ExxonMobil did not respond to requests for comment.
Chevron stated that it continuously reviews new exploration opportunities but does not comment on commercial matters.
Bloomberg added that Libyan authorities aim to reach a production level of two million barrels per day by 2030, surpassing the peak production of 1.75 million barrels reached during Muammar Gaddafi’s rule in 2006. Libya currently produces around 1.4 million barrels per day.
The agency confirmed that Libya held its last bidding round in 2007, four years before the uprising.
The chairman explained that the winners of the new bids will bear the costs of seismic surveys and other exploration steps, with the possibility of recovering these costs if commercial quantities of hydrocarbons are discovered.
Suleiman continued, saying the National Oil Corporation awaits approval of a development budget of about three billion dollars, which will help increase production to 1.6 million barrels per day within a year.
Part of this amount will be used to develop companies like Akakus, which operates the Sharara field, Libya’s largest oil field, in a joint project including TotalEnergies, Repsol S.A., OMV AG, Equinor ASA, as well as state-affiliated companies.
He confirmed that Waha Oil Company, a major Libyan oil producer, has the capacity to increase its production to 800,000 barrels per day from the current 300,000 barrels. Development of its North Gialo field alone will add 100,000 barrels.
