(Bloomberg) – Libya signed a deal with TotalEnergies SE and ConocoPhillips that would more than double production capacity of their Waha Oil venture, with investments likely to reach $20 billion over 25 years.
Under the pact, output is expected to increase to 850,000 bpd from about 350,000, Libya’s Minister of State for Communication and Political Affairs Walid Ellafi said.
After nearly a decade of minimal production due to the civil war that broke out in 2011, the deal signals renewed interest in Libya’s large petroleum reserves, where output was once comparable to Saudi Arabia’s. The latest deal opens the way for major oil companies to replenish their reserves and tap into the cheaply produced crude, potentially boosting supply for an oil market that’s steadily moving into surplus.
The pact with Waha Oil’s foreign partners was signed Saturday in Tripoli during the Libya Energy & Economic Summit, and will see the development of four new fields in the oil-rich North African country as well as a comprehensive exploration program covering 19 concession areas.
The project revenues for Libya are estimated to surpass $376 billion over the agreement’s lifetime, according to Ellafi.
See also: Libya launches first oil exploration bid round in 17 years
Several other deals were signed during the summit in Tripoli, including with Chevron Corp. on investment opportunities, particularly exploration prospects in the Sirte basin and the redevelopment of mature fields, the minister said.
Another agreement with Egypt would see the two neighboring countries cooperate on energy-related logistics and exploration and production.
Despite the risks posed by continuing political uncertainty, Libya’s vast fossil fuel potential and investor-friendly reforms are attracting global energy firms, according to a report from industry consultancy Enverus Intelligence Research.
