Algeria’s state-owned oil company Sonatrach has fully resumed its operations in Libya after years of suspension due to security concerns. The company had halted its activities following the outbreak of the 2011 conflict but is now back to developing and exploring key oil and gas fields, particularly in the Ghadames Basin.
Sonatrach’s CEO, Rachid Hachichi, confirmed that the company has begun full-scale exploration and development in the agreed concession areas in Libya, marking a significant step in the country’s oil sector recovery. The focus will be on increasing production and developing oil and gas assets in the Ghadames Basin, a region known for its rich hydrocarbon reserves.
Sonatrach’s return was set in motion in 2022 after the company signed an agreement with Libya’s National Oil Corporation (NOC). This deal paved the way for the Algerian oil giant to restart its operations, which are expected to contribute significantly to Libya’s efforts to revitalize its energy sector.
The resumption of Sonatrach’s operations is not only a boost to Libya’s oil industry but also strengthens ties between Algeria and Libya. With Libya holding Africa’s largest proven oil reserves, the country’s energy sector plays a critical role in the regional and global oil markets. Years of conflict have caused significant disruptions, and the return of international companies like Sonatrach is seen as vital to rebuilding the sector.
The collaboration between Sonatrach and the NOC is expected to play a key role in stabilizing the Libyan economy, which heavily relies on oil exports. Sonatrach’s investments and technical knowledge will also help address infrastructure issues that have plagued Libya’s oil industry, ensuring more reliable production and exportation.
This encouraging development underlines a period of recovery and cooperation in the Libyan energy sector, as well as the broader North African region. The resumption of operations by Sonatrach is more than an economic gesture—it is a testament to the region’s resilience and commitment to overcoming challenges, and fostering sustainable economic progress.
Notably, the NOC declared that a number of global oil corporations have lifted their respective force majeure, indicating a restart of their Libyan operations.
Specifically, Italy’s energy heavyweight Eni and the UK’s British Petroleum have given official notifications to the NOC about their intent to resume exploration activities and meet their contractual obligations in both the Ghadames Basin and the offshore “C” block.
These positive developments follow the NOC’s invitation last December, urging international oil and gas corporations with signed agreements to lift any imposed force majeure, due to previous instabilities.
