Libya discovers new oil field with estimated 195 million barrels in reserves

Libya’s National Oil Corporation (NOC) said on Friday a newly discovered oil field in the country’s Sirte Basin is estimated to contain around 195 million barrels of recoverable crude, as the North African producer seeks to boost output and attract more foreign investment into its energy sector.

The state-owned company said the discovery, named the Eassar field, was made by Austrian energy company OMV after drilling the B1-106/4 exploration well and completing an evaluation that confirmed the project’s commercial viability.

According to the NOC, the estimated reserves are contained within the Upper and Lower Sabil reservoirs in the Sirte Basin, one of Libya’s most productive oil regions stretching across the country’s central and eastern areas.

The corporation said the field is expected to produce about 5,000 barrels of oil per day once development is completed.

Development of the field will be managed by Zueitina Oil Operations Company, an NOC subsidiary, which will act as the project’s operator.

The discovery’s location close to existing production infrastructure is expected to shorten development timelines and reduce costs, allowing production to begin more quickly than would otherwise be possible.

The NOC said the discovery’s location close to existing production infrastructure is expected to shorten development timelines and reduce costs, allowing production to begin more quickly than would otherwise be possible. The company said bringing the field online would contribute to increasing Libya’s crude output and support the country’s oil industry.

Libya has been working to revive its energy sector after years of conflict and political instability repeatedly disrupted oil production and discouraged foreign investment.

In December 2022, the country’s internationally recognised Government of National Unity lifted force majeure on oil and gas exploration activities, inviting international energy companies to resume exploration and development projects that had been suspended because of security concerns.

Since then, authorities have sought to expand exploration, restore production capacity and encourage new investments aimed at strengthening the country’s position as one of Africa’s leading oil producers.

According to the latest figures published by the NOC, Libya currently produces more than 1.4 million barrels of crude oil per day. The country is exempt from production cuts agreed by the Organization of the Petroleum Exporting Countries (OPEC), allowing it greater flexibility to increase output as production recovers.

Oil remains the backbone of Libya’s economy, accounting for roughly 90% of government revenue. The country also holds Africa’s largest proven crude oil reserves, making continued exploration and field development central to its long-term economic recovery and efforts to stabilize public finances.

The Eassar discovery is expected to strengthen Libya’s production capacity, although the relatively modest initial output means its broader contribution will depend on the pace of development and future expansion of the field.