Key facts
- Libya's National Oil Corporation (NOC) and OMV have declared the Essar oil discovery commercially viable.
- The discovery is estimated to hold 195 million barrels of oil.
- The expected production capacity from the Essar discovery is around 5,000 barrels per day.
- Development work is set to commence, with proximity to existing facilities expected to speed up production.
- Libya is actively working to revive its oil sector and attract international investment after years of conflict.
Libya's National Oil Corporation (NOC) and Austrian energy firm OMV have declared the Essar oil discovery commercially viable, a significant step in the North African nation's efforts to revive its oil industry. The discovery, made by OMV Austria, is estimated to hold 195 million barrels of oil from the upper and lower "Sabil" reservoirs, with an anticipated production capacity of approximately 5,000 barrels per day.
Development work for the Essar discovery is slated to begin under the operator Zueitina Oil Operations Company. Its proximity to existing surface facilities is expected to expedite its entry into production. This declaration comes as Libya, OPEC's second-largest African producer, intensifies its campaign to attract international oil majors back to its upstream sector.
Following years of civil conflict, Libya and its NOC have been actively seeking partnerships. Last year, the country held its first oil and gas exploration bid round in 18 years, with the previous one occurring in 2007. More recently, NOC signed exploration and production-sharing agreements from its 2025 bid round with prominent international companies including Repsol, Turkish Petroleum, Eni, QatarEnergy, and MOL.
Libya's oil production has seen a notable increase, reaching about 1.4 million barrels per day, its highest level in over a decade. The country has set ambitious targets of 1.6 million bpd by the end of this year and aims for 2 million bpd in the longer term.