National Oil Corporation has signed an agreement with US oil major Chevron to conduct a technical study for offshore oil exploration in Libya, in a move aimed at attracting more investment into the country’s energy sector.
The agreement involves the offshore “NC 146” block and focuses on preparing a comprehensive technical study to assess oil and gas potential in the area, the National Oil Corporation said in a statement issued in Tripoli.
According to the corporation, the memorandum of understanding signed with Chevron covers geological and technical studies that will help determine the exploration and production potential of the offshore block.
Chairperson of the National Oil Corporation, Mesud Suleiman, said the agreement is part of Libya’s broader strategy to increase oil reserves and attract international energy companies back into the country’s oil sector.
The offshore block, he said, is considered a promising area that could strengthen Libya’s national oil reserves and lead to new discoveries.
“This partnership is not only a technical agreement but also a message of confidence in Libya’s investment environment and evidence of the return of major companies to explore and operate in promising opportunities in our country,” Suleiman said.
Libya seeks more oil investment
Libya, which has one of Africa’s largest oil reserves, has been working to increase oil production and attract foreign investment after years of political instability that affected oil exploration and production activities.
The agreement with Chevron signals renewed interest from international oil companies in Libya’s energy sector, particularly offshore exploration, which remains largely underdeveloped compared to onshore oil fields.
Energy analysts say offshore exploration agreements such as this typically begin with technical and seismic studies before drilling decisions are made, meaning production may still take several years if commercial quantities of oil are discovered.
Return of major oil companies
Libya’s oil authorities have in recent months been engaging international oil companies to invest in exploration and production as the country seeks to increase output, government revenue and foreign investment.
If exploration in the NC 146 offshore block proves successful, it could increase Libya’s oil reserves and strengthen the country’s position as a major oil producer in Africa and the Mediterranean region.
