Libya announces new oil field discovery with vast reserves

Libya’s National Oil Corporation (NOC) announced the discovery of a new oil field, named the Eassar, with estimated reserves of about 195 million barrels and an expected production capacity of around 5,000 barrels per day, as reported by Middle East Monitor on July 17th. 

In a statement from Libya’s National Oil Corporation, which manages Libya’s oil and gas sector, the corporation stated that the discovery was made by Austria’s OMV following the drilling of the B1-106/4 well and the completion of an evaluation of the company’s proposed development plan, which has confirmed the commercial viability of the field. The corporation said the discovery is estimated to hold about 195 million barrels of oil in the Upper and Lower Sabil reservoirs in the Sirte Basin, which lies in central Libya and extends eastward towards the neighbouring Cyrenaica platform. The NOC added that the field is expected to yield an approximate 5,000 barrels per day, and that the Zueitina Oil Operations Company, a subsidiary of the NOC, will oversee the development of the discovery as the primary operator. 

The corporation stated that the field’s proximity to already existing surface facilities will aid in the acceleration of development and allow it to be brought into production as soon as possible, allowing for higher oil output strengthening Libya’s oil sector. In 2022, Libya’s internationally recognized Government of National Unity lifted force majeure over oil and gas exploration activities in the country while calling on international companies to resume operations. 

Libya is currently producing more than 1.4 million barrels of oil per day, according to the most recent statistics published by the NOC on its website. Exempt from OPEC production cuts, Libya currently relies on oil revenues for nearly 90% of its current state budget and holds Africa’s largest documented oil reserves. 

Middle East Monitor, Maghrebi.org.