Libya Inks 25-Year Oil Agreement with TotalEnergies and ConocoPhillips
On January 24, 2023, Libya formalized a significant agreement with TotalEnergies and ConocoPhillips for a long-term oil development initiative. This 25-year contract, valued at over $20 billion, was announced by Prime Minister Abdulhamid al-Dbeibah.
Details of the Oil Agreement
The agreement, facilitated through Waha Oil Company, aims to enhance Libya’s oil production capacity by as much as 850,000 barrels per day (bpd). According to Dbeibah, this deal is projected to yield net revenues exceeding $376 billion.
Current Production and Waha Oil Company
- The current daily output of Waha typically fluctuates between 340,000 and 400,000 bpd.
- Waha Oil Company, a subsidiary of the state-operated National Oil Corporation (NOC), oversees five primary oil and gas fields and additional subfields.
- The company utilizes pipeline networks to transport crude to the Sidra oil terminal and gas to processing facilities.
Additional Agreements and Regional Cooperation
During the Libya Energy and Economy Summit in Tripoli, the Libyan government also inked a memorandum of understanding with Chevron, the U.S. oil giant. An additional cooperation accord was established with Egypt’s oil ministry.
Strengthening International Relations
Dbeibah emphasized that these agreements underscore Libya’s commitment to enhancing its partnerships with prominent international players in the global energy sector.
Future Developments in Libya’s Oil Sector
Masoud Suleman, the acting chairman of the NOC, announced that the outcomes of Libya’s first oil exploration bidding round in over 17 years will be revealed on February 11, 2023.
Libya’s Position in the Global Oil Market
Libya remains one of Africa’s most significant oil producers and is a member of OPEC. However, foreign investment has been hesitant due to the ongoing instability since the 2011 fall of Muammar Gaddafi.
Frequent conflicts between armed factions concerning oil revenues have often resulted in oilfield disruptions. Despite these challenges, Libya’s recent agreements signal a positive turn towards revitalizing its oil sector.
