Libya’s National Oil Corporation (NOC) has unveiled a new oil discovery in the Sirte Basin, one of the country’s most energy-rich regions. The discovery was made by OMV Austria Ltd. – Libya Branch, in well B1, located within Block 106/4.
Technical details of the oil discovery
According to data provided by NOC, the well reached a depth of 10,476 feet, and production tests indicate a capacity of more than 4,200 barrels of oil per day. In addition, it is estimated that the production of natural gas is estimated to exceed 2.6 million cubic feet per day.
The discovery was made under an Exploration and Production Sharing Agreement (EPSA) signed in 2008 which stipulates that NOC acts as the owner of the resource and OMV as the foreign operator, invests the capital and technology to explore and produce, and then both parties share in the production or profits.
What is the significance of the finding for Libya?
An oil discovery of this magnitude can increase oil and gas export revenues, which are the backbone of the Libyan economy. It also adds new reserves and production capacity to the global market, although the real impact will depend on Libya’s political stability to maintain and increase production in the long term.
It is expected that, following this finding, evaluations will continue and commercial development plans will be initiated in the area.
