Exxon has inked a preliminary deal for exploration at four offshore blocks in Libya after a decade of absence from the country.
The news was reported by Libya’s National Oil Corporation, which said the U.S. supermajor will conduct a detailed technical study of the blocks that are located off the country’s northwest coast and the Sirte Basin with the purpose of identifying the size of oil and gas resources in the blocks.
The deal follows similar preliminary agreements between the National Oil Corporation and BP and Shell, which also returned to Libya after a prolonged hiatus amid Libya’s civil war that began in 2011 after the U.S. deposed of Muammar Ghaddafi.
The memorandum of understanding with BP will see the UK-based supermajor conduct studies to assess the potential for hydrocarbon exploration and production in the Messla and Sarir fields, as well as in some surrounding exploration areas.
Separately, the Libyan oil corporation sealed an agreement with Shell for the oil and gas major to evaluate hydrocarbon prospects and conduct a comprehensive technical and economic feasibility study to develop the al-Atshan field and other fields fully owned by the NOC, excluding any areas where third parties, other than the NOC and Shell, have rights.
Libya, earlier this yea,r launched its first oil and gas exploration tender since 2007, which is also the first since the civil war started. Exxon, Chevron, TotalEnergies, and Eni were among the 37 international companies that expressed interest in Libyan acreage for oil and gas exploration. The participants in the tender were competing for 22 blocks, both offshore and onshore.
The country with the richest oil and gas resources in Africa holds an estimated 91 billion in untapped resources, per National Oil Corporation data. Production averages around 1.4 million barrels daily but is subject to frequent disruption from various political and paramilitary groups.
By Irina Slav for Oilprice.com
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