Libya’s National Oil Corporation (NOC) has announced the commencement of production at the Chadar field (NC-126), operated by its subsidiary, Zallaf for Oil and Gas Co.
In a statement released on Monday, NOC revealed that the Chadar field has achieved initial production rates of 1,500 barrels of crude oil per day and more than 7.5 million cubic feet of associated gas per day, as per a report by Reuters.
These production levels were reached on the first day of operations, marking a significant milestone for the country’s energy sector.
The Chadar field is located in the Sirte Basin, southeast of Ajdabiya in eastern Libya. It forms part of Libya’s strategic efforts to sustain its oil output, which stood at over 1.4 million barrels per day at the close of 2024. The field’s opening underscores the nation’s determination to maintain and potentially expand its role as a key oil producer in the region.
Speaking on the development, an NOC representative stated, “This marks a significant milestone in our commitment to increasing oil and gas production in Libya, ensuring energy security, and contributing to the nation’s economic stability.”
Refinery Project and International Collaboration
In addition to the Chadar field, Zallaf for Oil and Gas Co. has partnered with U.S.-based Honeywell for engineering services related to the planned South Refinery project. The contract, which was signed in March 2023, is estimated to cost between $500 million and $600 million.
Once completed, the refinery is expected to process 30,000 barrels of crude oil daily into conventional petroleum products.
“The South Refinery project is a vital step toward enhancing our refining capacity and supporting the local energy demand,” Zallaf stated.
In October 2024, Libya witnessed the resumption of oil exploration by Eni and BP, with drilling operations in the Ghadames Basin, as confirmed by NOC.
This refinery project highlights Libya’s efforts to boost its refining capabilities and attract international partnerships. The collaboration with Honeywell signals a growing confidence in the nation’s oil sector, which has faced years of disruptions due to political instability.
