Growing Interests in Libya’s Oil, Gas Resources Offers a Glimmer of Hope

Beaten to a pulp by bloody two civil wars and plagued by political friction and factional strife, Libya and its people have had to endure years of insurmountable political and economic upheaval that have hindered the growth of this once vibrant country.
Yet, with increased interest in the country’s rich hydrocarbon reserves, Tripoli could be back on its feet in no time, especially with the relative stability and temporary pause in hostilities that have been witnessed by the country in recent years.
Libya’s revival as a sizable force within the oil and gas world may very well come to fruition as Eni has been at the forefront of tapping into the country’s potential when it recently formalized the revocation of its force majeure on three significant offshore and onshore exploration areas. In exploration areas A and B which are onshore and area C which is offshore, Eni holds operatorship with a 42.5% stake, in addition to bp which has 42.5%, and the Libyan Investment Authority has a 15% stake.
“Following the revocation of Force Majeure by the JV, Eni, as operator of the blocks, will be able to resume the contract activities in exploration basins, some of which are located close to Wafa’s gas facilities,” Eni said in a recent press statement. “With an 80% share of national production (1.6 Bscf/d in 2022), Eni is the country’s leading gas producer and domestic market supplier.”
With even more attention being turned toward the war-torn country, investors and oil giants have already been quick to strike while the iron is hot, with Saipem being awarded a $1 billion landmark deal by Mellitah Oil & Gas B.V. Libyan Branch, a consortium that comprises the National Oil Corporation of Libya and Eni North Africa, to develop the country’s ambitious Bouri Gas Utilisation Project.
“Saipem will undertake revamping of the platforms and of the facilities of the Bouri gas field, which lies in water depths between 145 m and 183 m, offshore the Libyan coast. The contract entails the engineering, procurement, construction, installation, and commissioning (EPCIC) of an approximately 5,000-ton Gas Recovery Module (GRM), onto the existing DP4 offshore facility, together with the laying of 28 km of pipelines connecting the DP3, DP4, and Sabratha platforms,” the company said in a recent press statement. “The main lifting operations will be executed by the semi-submersible crane vessel Saipem 7000. With this award, Saipem confirms its commitment and competitive positioning offshore Libya. The completion of the project will make an important contribution to reducing CO2 emissions in Libya.”
Once hailed worldwide as a treasure trove for the energy market, the promise of stability in Libya’s political landscape gradually offers new hope of the country taking its rightful place as a hydrocarbon haven for investors and markets ravenous for its rich oil and natural gas.