Africa’s second-largest oil producer, Libya, is making a strong comeback as its National Oil Corporation (NOC) announces the discovery of new crude reserves amid a surge in foreign investment and exploration activities.
The development signals renewed growth for the country’s oil sector in the post-Gaddafi era, with both domestic and international operators ramping up exploration and production efforts.
The latest discovery was made by NOC’s wholly owned subsidiary, the Arabian Gulf Oil Company (ACOGO), in the Ghadames Basin near the Libyan-Algerian border, Business Insider Africa reported.
According to the corporation, the newly drilled H1-NC4 well is expected to produce about 4,675 barrels of crude oil per day and roughly 2 million cubic feet of natural gas. The project is entirely owned by the NOC.
An oil source within the Arabian Gulf Oil Company told Reuters that the company’s total oil production had reached 310,000 barrels per day by the end of October, marking a steady recovery in Libya’s output and reinforcing optimism in the country’s energy sector.
In a separate development, Austrian energy group OMV (OMVV.VI) also struck oil in the Sirte Basin. NOC confirmed that production tests from the exploratory well in Block 106/4, drilled to a depth of 10,476 feet, are yielding over 4,200 barrels of oil per day, with gas output surpassing 2.6 million cubic feet daily.
This represents OMV’s first discovery in the block since signing its Exploration and Production Sharing Agreement with NOC in 2008.
OMV’s return to Libya at the end of 2024, after more than a decade of absence following the unrest that ensued after Muammar Gaddafi’s fall, illustrates the improved security environment that is encouraging international energy companies to resume exploration and investment.
See Also:
Libya Central Bank Approves Printing Of $11 Billion To Ease Cash Shortages
Algerian state energy company Sonatrach has also resumed drilling operations in the Ghadames Basin as of mid-October. NOC stated, “Sonatrach is back working at the site in the Ghadames Basin, after quitting more than 10 years ago due to unstable security situation at that time.”
Meanwhile, Italy’s Eni has restarted offshore exploration in northwestern Libya after a five-year hiatus. NOC has also entered into agreements with BP and Shell to evaluate the hydrocarbon potential of several fields, with BP planning to reopen its Tripoli office by the fourth quarter of 2025 to oversee ongoing projects.
Earlier this year, Libya launched its first oil and gas exploration tender since 2007, and its first since the 2011 civil war, drawing strong global interest.
NOC chairman Masoud Suleman told Bloomberg that ExxonMobil, Chevron, TotalEnergies, Eni, and 33 other companies are competing for 22 onshore and offshore blocks. “Almost all well-known international companies” are participating, he said, underscoring Libya’s resurgence as a strategic hub for global energy investment.
Libya’s refining infrastructure, though limited in scale, remains a vital component of its petroleum industry.
The nation operates five major refineries, Zawiya, Ra’s Lanuf, Tobruk, Brega, and Sarir, which continue to handle most of its crude processing despite operational challenges in some facilities, particularly Ra’s Lanuf. These refineries are central to ongoing modernization efforts and future investment plans.
As Libya continues to stabilize politically and economically, its oil and gas sector is experiencing a significant revival.
With new discoveries, rising output, and renewed international confidence, the country is positioning itself for sustained growth and a return to prominence in Africa’s energy landscape.
See Also:
Libya’s Oil Revenue Reaches $14.65 Billion In First Nine Months Of Year, Central Bank Says
Image Credit: Energy Capital and Power
