While Libya’s political landscape may be uncertain, the North African producer has shown no signs of slowing down the development of its most promising, large-scale oil and gas projects. In fact, the energy sector remains a strategic solution to dual priorities of revitalizing the national economy and meeting rising fuel demand in both the country and the region. In 2022, Libya will see the advancement of several of its oil and gas megaprojects backed by leading IOCs aimed at tapping gas and condensate resources, boosting oil output at existing fields and scaling up domestic refining capacity.
In partnership with Libya’s National Oil Corporation (NOC), Italian multinational Eni is spearheading a large-scale oil project comprising the installation of two new fixed offshore platforms (A and E) opposite the Mellitah Complex. Commencing in the first quarter of 2023 and entering production in 2026, the project aims to monetize gas and condensate resources for both domestic use and regional export, with a combined gas production capacity of 760 million cubic feet per day upon completion. The project also requires upgrading an existing platform and constructing a network of subsea pipelines to deliver gas to an onshore processing facility. Bid processes for the engineering, procurement and construction of this infrastructure are already under way, with construction expected to begin in the first quarter of 2023.
Waha Concessions Development
The Waha concessions in Libya’s Sirte Basin are some of the most prolific in the region, producing around 300,000 barrels per day (bpd) and feeding into Libya’s Es Sider grade. Last November, the Libyan government approved the $300-million sale of Hess Corporation’s stake in the concessions to TotalEnergies and ConocoPhillips, boosting their respective shares to 20.41%. The asset has long-been at the center of redevelopment plans, as it contains more than 500 million barrels of oil equivalent and exploration potential spanning over 53,000 km². In December 2019, then-Total and the NOC signed an agreement that gave the French major a minority stake in Libya’s Waha asset, in which it would help the NOC to develop the North Gialo and NC 98 fields, increasing production by 180,000 bpd and investing $650 million. Now, the development of the aforementioned fields remains a top priority, as Libya seeks to meet phased production targets starting with 1.8 million bpd by the end of 2022.
$600-million Oil Refinery
Announced last October, Libya has begun construction of a $600-million oil refinery located near the Al-Sharara field in the Oubari region, which produces approximately 300,000 barrels of oil per day. The project is anticipated to take three years to complete and to generate approximately $75 million per year in income. According to the NOC, the refinery will produce 1.3 million liters of gasoline, one million liters of diesel and 600,000 liters of jet fuel daily, in addition to a cooking gas plant that will produce 8,000 cylinders per day. The construction of the refinery is significant for Libya, as the country is seeking to reduce chronic fuel shortages and add value to crude oil output in-country, as well as foster job creation and economic development in southern Libya.
Libya Energy & Economic Summit 2022
The Libya Energy & Economic Summit returns to Tripoli on November 22-23, 2022. After a successful inaugural event in 2021 in partnership with the Office of the Prime Minister, Ministry of Oil and Gas, and National Oil Corporation of Libya, Energy Capital & Power expands this critical hybrid forum in its second year.