Libya nears end of oil bids

Libya is approaching the completion of a bidding round for exploring its oilfields as the North African country moves forward with plans to attract new investments.

The state-owned National Oil Corporation (NOC) announced that companies are expected to submit their offers in February.

This round of bidding, the first in over 17 years, covers 22 areas for oil exploration and development, with 11 blocks located offshore and 11 onshore.

The NOC said that these projects will expand Libya’s crude oil and gas reserves, ensuring a secure economic future for Libyans.

Libya produces some of the cheapest oil in North Africa, but much of it has remained offline since a violent civil war erupted between rival factions after the fall of Muammar Qaddafi in 2011.

The North African country is working to revive its hydrocarbons sector and is inviting new companies to develop its oilfields.

Oil Minister Khalifa Abdulsadek told a conference in Abu Dhabi this month that Libya plans to increase output from 1.4 million barrels per day this year to 1.6 million barrels next year and to 1.8 million barrels per day by 2027.

Libya also aims to redevelop oilfields discovered in the 1950s and 1960s to boost production. Abdulsadek stated that the country has a mission to raise output to two million barrels per day over the next five years.

Investors have hesitated to commit amid disputes between armed rival factions over control of Libya’s oil revenue. The NOC has declared force majeure at several fields, including El Feel and Sharara, following protests and civil unrest.

The International Monetary Fund said in April that Libya’s economy is projected to rebound this year due to an expected increase in oil production after disruptions last year slowed growth.

The country’s real gross domestic product grew by 2.4 percent last year, following a strong 10.2 percent growth in 2023, recovering from a recession-hit 2022. This growth benefited from increased oil production and a gradually improving security situation.

source: www.thenationalnews.com