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Libya invites multinationals to resume oil and gas exploration

Oil Gas

The Government of National Unity (GNU) in Libya has lifted its force majeure on exploring for new oil and gas resources in the country, paving the way for international oil companies (IOCs) to once again consider operating in the country.

In a statement, the GNU, which is based in Tripoli, said it would supply the necessary security and support for IOCs with existing agreements to resume exploration for oil and gas resources. In a separate statement, the government-owned National Oil Corp. (NOC) said it:

“…welcomes them to resume their work in Libya and assures them of its readiness to provide all necessary support to resume their operations, as well as assisting them in facilitating the return, along with providing a safe working environment in cooperation with the civil and military authorities of the Libyan state.”

Libya has recently experienced a recovery in oil production, with it currently standing at around 1.2 million barrels per day, following a deal between rival political factions to lift an oil blockade, but this recovery has been limited by the aging infrastructure and a lack of funds. The GNU is therefore keen to attract oil majors like Eni and BP, the maker of the Castrol coolant and lubricant products.

The NOC is currently trying to complete a deal with Eni to access around 80 Tcf in proven gas reserves by developing fields, and it is discussing the prospect of TotalEnergies and BP investing in the country’s renewable energy generation capacity in return for gas.

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