New oil discovery made in central Libyan basin
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The Libya National Oil Corporation (NOC) has declared a new oil discovery in the Sirte Basin, in central Libya, the Moroccan government-friendly outlet North Africa Post reported on October 30th.
The oil discovery was made by Austrian energy company, OMV, through its Libyan division, with the firm finding that the well reached a depth of about 10,476 feet. The well is predicted to be able to make just over 4,200 barrels of oil per day, as well as approximately 2.6 million cubic feet of natural gas per day. OMV’s uncovering of this well occurs after a a resumption of activity following a suspension the company received, with the oil giants Shell and BP having also faced suspensions in Libya.
This discovery marks a significant development for Libya. Sirte Basin stands as a significant oil and gas-producing feature in Libya, with an estimated 43.1 billion barrels of oil held in reserves. As such, the uncovering of this new well contributes to the country’s upcoming development.
On the other hand, the well might not be utilised to its full potential. With suspicions of corruption across Libya’s oil industry, as well as years of political instability existing across the nation, it is possible that the discovery will not be as significant as OMV envisages. Establishing long-term production and developing infrastructure that allows the discovery to be turned into a commercial investment could therefore face challenges.
Ultimately, while OMV’s discovery could yield over 4,200 extra barrels of oil to be produced in Libya each day, there are existing caveats that must be navigated for the discovery to be an advantage.
North Africa Post, Energy News Africa, Maghrebi.org
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