Energy Intelligence Finance quotes Ahmed Gaddah, Partner, Eltumi Partners in an article discussing the oil & gas sector across Africa.

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October 2024 – The National Oil Corporation (NOC) is targeting overall production of 2 million b/d of oil and 4 billion cubic feet of natural gas per day within three to five years. NOC plans to invest up to US$18 billion to develop 45 greenfield and brownfield projects.

Libya represents an opportunity for Europe-based oil companies, offering relatively easy to extract, and hence low-cost, oil and gas reserves on the doorstep of the EU, a market that is in need of both fuels.

NOC is preparing to launch a bid round next year covering onshore areas such as the Murzuq, Ghadames and Sirte Basins, although few details on new terms have been publically disclosed. You can see our latest thoughts on these developments here.

Industry sources think NOC will seek to maintain the existing exploration and production-sharing agreement model from the last auction held over 2005-07.

Amendments are likely to be made to reflect the radically changed upstream landscape, factoring in cost recovery, gas extraction and Scope 1 and 2 emissions requirements. But it is unclear if unconventionals will be part of the auction.

“I believe the mindset is changing on attracting investment, and I think Libya is aware that it has to seize this opportunity,” says Ahmed Gaddah, partner at law firm Eltumi Partners.

 

Formerly General Counsel of the Libyan National Oil Corporation and of the European Oilinvest Group, Ahmed Gaddah is an established and highly respected international energy lawyer and has worked across Libya, the Middle East and Europe. His understanding of energy economics saw him develop Libya’s EPSA IV model contract and bidding rounds that attracted billions of dollars of inward investment from major international upstream players. This experience gives him unique insight into the upcoming new EPSA Model Contract and bidding round.

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