TRIPOLI (Reuters) -Oil Majors BP and Shell have made agreements with Libya’s National Oil Corp (NOC) to conduct studies for hydrocarbon exploration and development at three Libyan oilfields, NOC said on Monday.
Libya, Africa’s second-largest oil producer and a member of the Organization of the Petroleum Exporting Countries, has suffered from disruptions to its oil activities due to disputes between armed rival factions over oil revenues that have often led to oilfield shutdowns.
Foreign investors have been wary of putting money into Libya, which has been in a state of chaos since the overthrow of Muammar Gaddafi in 2011. However, oil giants like Eni, OMV, BP, and Repsol resumed exploration activities in Libya last year after halting them for a decade.
BP will reopen its office in the capital Tripoli during the last quarter of 2025, NOC said in its statement on Monday.
It also said it signed a memorandum of understanding with BP to conduct studies to assess the potential for hydrocarbon exploration and production in the Messla and Sarir oilfields, as well as in some surrounding exploration areas.
BP will also study broader “unconventional” oil and gas potential within the country, which refers to extracting hydrocarbons trapped in porous rock formations, requiring specialised extraction technologies such as fracking.
The British oil major had re-entered Libya in 2007 with an exploration and production sharing agreement covering exploration areas A and B (onshore), and area C (offshore) with NOC, which was later suspended due to a force majeure.
In 2022, Eni took a 42.5% stake and assumed operatorship of the agreement, with BP retaining a 42.5% interest and the Libyan Investment Authority holding the remaining 15%. The force majeure was formally lifted in 2023, allowing onshore exploration to resume.
Separately, the state oil firm said it agreed with Shell to evaluate hydrocarbon prospects and conduct a comprehensive technical and economic feasibility study to develop the Atshan oilfield and other fields fully owned by NOC.
(Reporting by Ahmed Elumami in Tripoli, additional reporting by Yamini Kalia in Bangalore and Shadia Nasralla in LondonEditing by Marguerita Choy and Susan Fenton)
