Libya’s Supreme Council for Energy Affairs has called on the state-owned National Oil Corporation (NOC) to expedite negotiations with international companies, to begin investments in the Ghadamis Basin.
During a regular meeting chaired by the Prime Minister of the Government of National Unity (GNU), Abdel-Hamid Dbaiba, the government affirmed the need for supporting flood-affected cities in eastern Libya.
The meeting was dedicated to discussing the outcomes of negotiations conducted by the NOC, with global firms regarding the allocation of Block NC7. This is a designated area within the Ghadamis Basin dating back to 1979.
According to a statement by the GNU, studies have revealed significant oil and gas reserves within Block NC7. These reserves are estimated at approximately 64 million barrels of oil, 39 million barrels of condensates, and a substantial volume of 2.4 trillion cubic feet of gas.
Furthermore, the Council endorsed the NOC’s initiative to reduce carbon emissions, and directed all institutions to actively participate in this endeavour.
During the meeting, Dbaiba highlighted the need to sustain the government’s plan to increase oil and gas production, through collaboration and investment with global companies. He urged for taking advantage of rising prices, and the world’s growing demand for these resources.
The current power vacuum in Libya has triggered a cascade of events leading to internal strife, factional infighting, and outside intervention, significantly affecting Libya’s oil output and consequently, its economy.
Oil production has been fraught with challenges in the past decade. Following the ousting of Muammar Gaddafi in 2011, Libya has endured ongoing conflict and political turmoil. The discord led to the division of the country into rival factions, each controlling different regions and parts of the oil infrastructure.
These political divides have had a significant impact on production and export capabilities. The country has faced several blockades and closures of its oil fields and export terminals, often used as bargaining chips in political negotiations. These disruptions have led to dramatic fluctuations in production levels, causing significant uncertainty in the global oil market.
The nation’s oil sector remains crucial not only for Libya’s economic recovery, but also for the stability of global energy supplies.