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FinanceLibya NOC and OMV declare Essar oil discovery commercial
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Libya's National Oil Corporation (NOC) and Austrian energy firm OMV have declared the Essar oil discovery commercially viable, marking a milestone in Libya's efforts to revive its oil industry after years of civil war. The discovery, made by OMV, holds an estimated 195 million barrels of oil from the upper and lower Sabil reservoirs, with an expected production capacity of about 5,000 barrels per day. Development work will be led by Zueitina Oil Operations Company, with rapid production targeted due to proximity to existing facilities. This announcement follows Libya's first oil and gas bid round in 18 years, launched in 2025, which saw agreements with international firms including Repsol, Eni, and QatarEnergy. Libya's oil production has risen to approximately 1.4 million bpd, its highest in over a decade, with officials aiming for 1.6 million bpd by year-end and 2 million bpd in the longer term.
Source report
Libya’s National Oil Corporation (NOC) and Austrian energy firm OMV have declared the Essar oil discovery commercially viable, as OPEC’s second-largest African producer seeks to revive its industry through partnerships with international oil majors.
NOC stated that the “Essar” discovery, made by OMV Austria, is now deemed commercially viable following the drilling of well B1-106/4 and the completion of the evaluation process for the development plan submitted by the Austrian company to the NOC.
Key Reserves and Production Estimates
Total reserves from the discovery are estimated at 195 million barrels of oil from the upper and lower “Sabil” reservoirs, with an expected production capacity of approximately 5,000 barrels per day (bpd), the Libyan state oil firm said.
Development Timeline
Development work for the discovery will begin under the operator, Zueitina Oil Operations Company. NOC added that the site is expected to be brought into production as quickly as possible due to its proximity to existing surface facilities.
Broader Industry Context
Following years of civil war and turmoil, Libya and its national oil company have launched a campaign to attract Big Oil firms back to the country’s upstream sector, with the first oil tenders in nearly two decades.
- Last year, Libya launched its first bid round for oil and gas exploration in 18 years.
- The previous bid round was held in 2007, four years before the toppling of Muammar Ghaddafi in 2011, which led to a protracted civil war involving various factions and tribal interests vying for control of key institutions and major oilfields.
- NOC last month formally signed exploration and production-sharing agreements from its 2025 bid round with international companies including Repsol, Turkish Petroleum, Eni, QatarEnergy, and MOL, marking the country’s first major licensing push in 17 years.
Production Growth
In the meantime, Libya’s production has climbed to roughly 1.4 million bpd, its highest level in more than a decade, with officials targeting:
- 1.6 million bpd by the end of this year
- 2 million bpd further out
By Tsvetana Paraskova for Oilprice.com
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Libya and OMV Declare Essar Oil Discovery Commercial as Production Revival Accelerates