Two big announcements from Libya’s National Oil Corporation (NOC) have come out recently, in further signs of the NOC’s work to increase hydrocarbon output in both the immediate and longer-term future.
Firstly, the NOC has indicated that it will sign a new exploration agreement on the NC7 block in the Ghadames Basin at the next Libya Energy and Economic Summit. (The 2023 Summit, originally scheduled for November and now pushed back to early January, seeks to facilitate deal-signing on projects in Libya’s energy sector by both Libyan and international companies.)
Interest in the NC7 block has been growing for some time, with reports that major international energy giants had been seeking to sign the exploration agreement for the block earlier in the summer. It is believed that the block contains oil and gas reserves, and the NOC is keen to see this potential explored.
Secondly, the NOC has announced it will soon recommence factory operations at the Ras Lanuf Industrial Complex, including operations at its thermal cracking plant.
Operations at Ras Lanuf have been suspended for over 12 years and this latest development stems from a plan, set up in 2019, to re-activate works at the complex. With the re-commencement of operations at the complex now almost complete, commentators expect it to facilitate sizable economic activity in Libya.
Both developments are key examples of the NOC’s focus on increasing hydrocarbon input in Libya not just in the immediate moment, but for the years ahead. Should block NC7 prove to be fruitful ground for exploration, it will add to Libya’s hydrocarbon output on both fronts. Similarly, the recommencement of works at Ras Lanuf indicate the country’s re-emerging capacity to handle large amounts of hydrocarbon production in the long-term, as it scales up to become a major market in the global energy sector.
Our team at Eltumi Partners specialise in energy and infrastructure projects. We track developments in these sectors in order to provide commercial legal support to businesses operating in the sector. Follow our LinkedIn page for ongoing updates and insight.