Libyan oil corporation approaches last stage of oil bid round

Libya’s National Oil Corporation (NOC) is reported to be approaching the final stage of a public exploration bid round according to a statement on November 20th, Arab News via Reuters reported.

The NOC is moving forward with its first public bid round in more than 17 years. The round, which was announced earlier this year, is said to cover 22 blocks for areas of oil and gas exploration. Of these 22 blocks, they are reportedly split evenly between 11 offshore and 11 onshore blocks.

Libya, the second-largest oil producer in Africa and a member of the Organization of the Petroleum Exporting Countries (OPEC) has made major recent investments in their oil industries. This has been large in part due to the new oil discovery in the Sirte Basin, as well as the redevelopment of the brown fields which had previously been unused.

NOC released an official statement, declaring the move “will boost Libya’s crude oil and gas reserves, supporting higher production and providing a measure of economic security for Libyans.”

Libya’s NOC are expecting interest from many international oil companies, likely in hopes of using the oil investments as a form of major economic growth for the country. This follows the return of oil giants such as Shell and BP in Libya earlier this year.

Despite this, many foreign investors are likely wary of putting their money into Libya, as the country has become defined by constant political friction between the nation’s two rival government administrations. The existing political tension in Libya is said to have had a negative impact on the country’s oil industry, as fuel smuggling could be seen to harm foreign investment prospects of thee oil industry.

Ultimately, while the bid is said by the NOC to boost Libya’s crude oil and gas reserves, it is important to consider some corporations will make decisions with caution in the context of Libya’s current political turmoil and state.

Arab News via Reuters, Maghrebi.org