Resumption of Oil Drilling in Libya by Eni and BP after a Decade-long Hiatus

European energy giants Eni and BP resume onshore drilling activities in Libya after ten years, as the country seeks to double its oil production within five years.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

After a decade of inactivity, European energy companies Eni (Italy) and BP (United Kingdom) have restarted drilling operations in Libya, marking a significant shift in the country’s oil production dynamics. This renewal comes amid a gradual stabilization following internal conflicts that have hampered Libya’s energy sector for years. The Libyan National Oil Corporation (NOC) announced this resumption on October 26, emphasizing the return of activity in the onshore field in partnership with the Libyan Investment Authority.

Eni has begun drilling operations in the Ghadames Basin, within Block B, where its A1-96/3 exploration well targets promising geological formations potentially containing oil and gas. Located only 35 kilometers from the Wafa field, with a production capacity of 37,000 barrels per day, the project aims to drill to a depth of over 3,000 meters.

Impacts on National Production

The resumption of BP and Eni’s drilling activities aligns with NOC’s efforts to achieve a national production goal of 2 million barrels per day (b/d) within five years, compared to the current production of around 1.15 million b/d. In this context, Akakus Oil Operations, a joint venture operating in the Sharara field, recently increased its daily production by 10,000 barrels, reaching 284,616 b/d. The Sharara field, Libya’s largest, is co-managed by a consortium including NOC, Repsol (Spain), TotalEnergies (France), OMV (Austria), and Equinor (Norway).

Impact of Recent Political Upheavals

The Libyan oil sector has remained sensitive to political disruptions. In August, eastern oil fields were shut down due to tensions between political factions over the management of oil revenue. This shutdown, which cut national production to 580,000 b/d in September, ended with the appointment of Naji Essa as governor of the Central Bank of Libya, securing an agreement from chambers in both East and West to stabilize the sector.

However, armed groups and political actors continue to pose a threat to oil production. While improved security has allowed for the resumption of activities, fields like El-Feel and Sharara remain vulnerable to political unrest. The El-Feel field, co-managed by Eni and NOC, nearly reached a record production level of 90,000 b/d after reopening in October.

Price Fluctuations and Export Outlook

The production of Es Sider crude, Libya’s primary export grade, recently depreciated, trading at a discount of $2.20/barrel to dated Brent—a decrease from a historic premium of $1 during the closures. The price volatility highlights the fluctuations of the Libyan market, which remains heavily influenced by internal tensions.

Eni and BP, along with other European partners, continue to play a key role in the recovery of the Libyan oil sector. However, the stability of production remains uncertain, raising questions about Libya’s capacity to meet its long-term production goals in a politically volatile environment.

The US Treasury Department has imposed sanctions on more than 50 entities linked to Iranian oil exports, targeting Chinese refineries and vessels registered in Asia and Africa.
Khartoum et Juba annoncent un mécanisme commun pour protéger les oléoducs transfrontaliers, sans clarifier le rôle des forces armées non étatiques qui contrôlent une partie des installations.
The Namibian government signed an agreement with McDermott to strengthen local skills in offshore engineering and operations, aiming to increase oil sector local content to 15% by 2030.
Nigeria deploys a 2.2 million-barrel floating storage unit funded by public investment, strengthening sovereignty over oil exports and reducing losses from theft and infrastructure failures.
Despite open statements of dialogue, the federal government maintains an ambiguous regulatory framework that hinders interprovincial oil projects, leaving the industry in doubt.
Canada’s Sintana Energy acquires Challenger Energy in a $61mn all-share deal, targeting offshore exploration in Namibia and Uruguay. The move highlights growing consolidation among independent oil exploration firms.
The 120,000-barrel-per-day catalytic cracking unit at the Beaumont site resumed operations after an unexpected shutdown caused by a technical incident earlier in the week.
An agreement was reached between Khartoum and Juba to protect key oil installations, as ongoing armed conflict continues to threaten crude flows vital to both economies.
Alnaft has signed two study agreements with Omani firm Petrogas E&P on the Touggourt and Berkine basins, aiming to update hydrocarbon potential in key oil-producing areas.
Import quotas exhaustion and falling demand push Chinese independent refineries to sharply reduce Iranian crude volumes, affecting supply levels and putting downward pressure on prices.
Serbian oil company NIS, partially owned by Gazprom, faces newly enforced US sanctions after a nine-month reprieve, testing the country's fuel supply chain.
US-based Chevron appoints Kevin McLachlan, a veteran of TotalEnergies, as its global head of exploration, in a strategic move targeting Nigeria, Angola and Namibia.
Lycos Energy finalises the sale of its Alberta assets for $60mn, planning an immediate $47.9mn cash distribution to shareholders and the launch of a share buyback programme.
Russian oil output moved closer to its OPEC+ allocation in September, with a steady rise confirmed by Deputy Prime Minister Alexander Novak.
Fuel shortages now affect Bamako, struck in turn by a jihadist blockade targeting petroleum flows from Ivorian and Senegalese ports, severely disrupting national logistics.
McDermott has signed a memorandum of understanding with PETROFUND to launch technical training programmes aimed at strengthening local skills in Namibia’s oil and gas sector.
The example of OML 17 highlights the success of an African-led oil production model based on local accountability, strengthening Nigeria’s position in public energy investment.
ExxonMobil has signed a memorandum of understanding with the Iraqi government to develop the Majnoon oil field, marking its return to the country after a two-year absence.
Crude prices rose following the decision by the Organization of the Petroleum Exporting Countries and its allies to increase production only marginally in November, despite ongoing signs of oversupply.
Cenovus Energy modifies terms of its acquisition of MEG Energy by increasing the offer value and adjusting the cash-share split, while reporting record third-quarter results.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.