Irina Slav
BP and Eni have returned to Libya after ten years of avoiding the country amid its civil war. Per a statement by the National Oil Corporation of Libya, Italy’s Eni resumed exploratory drilling in the Ghadames Basin last weekend. The company operates the exploration block where it is drilling in partnership with BP and the Libyan Investment Authority—the country’s sovereign wealth fund.
The Italian major acquired half of BP’s 85% stake in the Ghadames Basin block back in 2018. At the time, the company planned to start drilling at the site soon after the acquisition but the unstable political situation in the country changed those plans, as blockades of the oil fields and the oil export terminals became standard practice among various political and paramilitary factions.
Earlier this year, Libya’s oil production was decimated after the country’s two governments locked horns over the appointment of a new central bank governor. Since the central bank handles Libya’s oil revenues, both governments wanted their own man at the top position. The eastern government, which controls most of Libya’s oil fields through affiliated armed groups, said production would be suspended until a compromise is found and promptly proceeded to carry out its threat.
As a result, Libya’s oil production dropped from over 1 million barrels daily to about 100,000 bpd for a short while, until the two governments shook hands on a new central bank governor. The events highlighted the fact Libya is still not the safest of locations for oil operators, yet this appears to no longer be the deterrent it used to be.
Two other Western energy majors are also returning to Libya, according to the NOC. Repsol, the Spanish operator, was preparing to start drilling in the Murzuq Basin in the coming weeks, and Austria’s OMV was also preparing for drilling in the Sirte Basin, the Libyan state energy company reported.
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Italy’s Eni, BP resume onshore drilling in Libya after 10-year hiatus
Eni has started drilling in an area of the Ghadames Basin.
Italian energy company Eni and British oil giant BP have resumed exploration in Libya after onshore drilling was halted in 2014, Libya’s national oil corporation (NOC) said.
NOC also said in a statement that Eni had started drilling in an area of the Ghadames Basin.
It noted that the well A1-96/3 is the first contractual obligation in Area B in the Ghadames Basin, in accordance with the Type IV Contracting Agreement of 2007. Eni operates the area in partnership with BP and the Libyan Investment Company.
Mellitah Oil & Gas oversees the drilling and execution of all activities related to this well, thanks to its extensive experience in the region following the commissioning and development of its Al Wafa field.
The NOC said that a range of promising geological formations will be tested at well A1–96/3, which is expected to contain oil and gas. The final well is expected to be about 10,327 feet (3,147 metres) deep.
The well A1-96/3 is about 35 kilometres from the Wafa field, and about 650 kilometres from the capital, Tripoli.
According to the NOC, Repsol, the Spanish oil company, was preparing to restart drilling in the Murzuq Basin, while Austria’s OMV plans to resume its activities in the Sirte Basin in the coming weeks.
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Eni and BP resume operations in Libya, Repsol and OMV to start within weeks: NOC
Sami Zaptia
Libya’s state National Oil Corporation (NOC) announced today that Italy’s Eni and Britain’s British Petroleum (BP) have resumed exploration activity in Libya after onshore drilling operations have been halted since 2014. It added that Spain’s Repsol is also preparing to resume drilling operations in the Murzuq Basin, while Austria’s OMV will begin operations in the Sirte Basin in the coming weeks.
The NOC said Eni began its exploration activity today in Area B (96/3) in the Ghadames Basin, where the first exploratory well A1-96/3 (Wildfire Hope) was drilled.
It noted that the well A1-96/3 is the first contractual obligation in Area B in the Ghadames Basin, in accordance with the Type IV Contracting Agreement of 2007. Eni operates the area in partnership with BP and the Libyan Investment Company.
Mellitah Oil & Gas oversees the drilling and execution of all activities related to this well, thanks to its extensive experience in the region following the commissioning and development of its Al Wafa field.
The NOC said that a range of promising geological formations will be tested at well A1–96/3, which is expected to contain oil and gas. The final well is expected to be about 10,327 feet (3,147 meters) deep.
The well A1-96/3 is about 35 kilometres from the Wafa field, and about 650 kilometres from the capital, Tripoli.
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After decade halt, Eni, BP resume hydrocarbon exploration in Libya
Jack Dutton
Onshore drilling had been suspended for a decade, since the beginning of the Libyan civil war between rival factions in the country’s east and west.
The Italian energy company Eni and UK oil giant BP have resumed exploration in Libya for the first time since drilling was halted in 2014, Libya’s state-run National Oil Corporation has said.
Onshore drilling had been suspended for a decade, since the beginning of the Libyan civil war between rival factions in the country’s east and west.
In a statement issued Sunday, NOC announced that Eni had begun drilling in the Ghadames Basin, in the northwest. It added that well A1-96/3 is the first contractual obligation in the basin’s Area B. The Italian energy company operates in the basin in a partnership with BP and the Libyan Investment Company.
NOC said there will be more exploration in A1–96/3, which is thought to contain oil and gas. The final well is expected to be about 10,327 feet (3,147 meters) deep, the state-run firm said.
The well is about 22 miles from the Wafa field, close to the Algerian border, and about 404 miles southwest of the capital, Tripoli.
ENI has been operating in Libya since 1959 and is the country’s leading international gas producer, accounting for around 80% of national gas production. The Italian firm operates in the North African state through Mellitah Oil and Gas BV, a 50-50 joint venture with NOC.
The NOC also said in its statement that Spain’s Repsol is preparing to resume drilling in the Murzuq Basin, and Austria’s OMV will begin operations in the Sirte Basin in the coming weeks.
Libya is Africa’s top oil producer, with an output of around 1.2 million barrels per day. Output fell in August, however, amid a crisis at the country’s Central Bank, during which the bank’s governor fled the country due to threats against him and his co-workers by armed militias believed to be linked to Libya’s UN-backed government, the Tripoli-based Government of National Accord. On Sept. 30, the eastern-based parliament approved the appointment of Naji Mohamed Issa Belqasem as the new Central Bank governor.
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