Libya Launches First Oil Exploration and Development Bidding Round in 17 Years
In a significant move to attract foreign investors, Libya has opened its doors with the launch of its first oil exploration and development bidding round in over 17 years.
The country is offering a total of 22 blocks for exploration, with an equal split between onshore and offshore locations. This initiative is part of Libya’s efforts to rejuvenate its energy sector and boost crude oil output.
The bidding round, which officially began on March 3, will be conducted under a Production Sharing Agreement (PSA) model. This shift is aimed at enticing more international interest by providing more investor-friendly terms compared to the previous EPSA IV framework.
Speaking at an event in London, Chairman of the National Oil Corporation (NOC), Massoud Suleman, expressed Libya’s commitment to increasing foreign participation in its oil sector.
Currently, Libya produces around 1.4 million barrels per day (bpd), slightly below the pre-civil conflict levels of 1.6 million bpd. The country’s target is to reach a production level of 2 million bpd, which necessitates significant financial investment and infrastructure development.
Oil Minister Khalifa Abdulsadek emphasized that the blocks on offer include some of Libya’s most resource-rich hydrocarbon basins, such as Sirte, Murzuq, and Ghadamis, as well as offshore zones in the Mediterranean.
In an earlier statement to Reuters, Abdulsadek estimated that an investment of between $3 billion and $4 billion would be required to increase output to 1.6 million bpd.
Over the past decade, Libya’s energy sector has faced numerous challenges due to political instability, ongoing conflict, and armed factional disputes. These issues have resulted in frequent production disruptions and temporary closures of key oilfields.
With the launch of this new bidding round, the Libyan government aims to rebuild investor confidence and set the stage for a sustained increase in oil production.
