BP, Shell to Conduct Studies for Hydrocarbon Exploration and Development in Libyan Oilfields

BP and Shell will conduct studies for hydrocarbon exploration and development at three Libyan oilfields with the National Oil Corp (NOC). The companies will assess hydrocarbon potential in the Messla and Sarir oilfields and the Atshan oilfield, and a feasibility study will be conducted for the latter. Libya's oil output has reached 1.385 million barrels per day.

Oil Majors BP and Shell have agreed with Libya's National Oil Corp (NOC) to conduct studies for hydrocarbon exploration and development at three Libyan oilfields. The companies will assess the hydrocarbon potential in the Messla and Sarir oilfields and conduct a comprehensive technical and economic feasibility study for the Atshan oilfield [1].

Libya, Africa's second-largest oil producer and a member of the Organization of the Petroleum Exporting Countries (OPEC), has been grappling with disruptions in oil activities due to disputes between armed rival factions over oil revenues. However, the recent resumption of exploration activities by oil giants like Eni, OMV, BP, and Repsol has indicated a shift in the country's energy landscape [2].

The NOC has stated that the national oil output in the past 24 hours reached 1.385 million barrels per day, highlighting Libya's significant oil reserves and potential [3]. The studies conducted by BP and Shell aim to evaluate the feasibility of further exploration and development in the targeted oilfields, which could contribute to the country's goal of increasing daily oil output to 2 million barrels by 2030.

The resumption of oil production by companies like BP, Shell, and others marks a significant step forward for Libya's energy sector. The country's oil infrastructure has been neglected and damaged due to over a decade of conflict, and the return of major oil companies indicates a potential for significant investment and development in the sector [1].

The NOC is also awaiting approval of a development budget of about $3 billion, which will help raise output to 1.6 million barrels per day within a year. This budget will be partly used to develop companies such as Akakus, which operates Sharara—Libya's largest oil field—alongside TotalEnergies, Repsol, OMV, and Equinor [1].

Despite its oil riches, Libya has little refining capacity and is dependent on fuel imports, which has caused shortages in recent months. However, the NOC has allocated 20 billion dinars ($3.7 billion) for fuel imports this year to address this issue [1].

The studies conducted by BP and Shell, along with the ongoing efforts to stabilize Libya's energy sector, are crucial steps towards unlocking the country's vast oil potential. As Libya seeks to attract more investment and develop its oil infrastructure, the successful completion of these studies could pave the way for further exploration and production activities, ultimately contributing to the country's economic recovery.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-02/chevron-total-vying-in-libya-s-first-oil-tender-since-2011-war
[2] https://www.lse.co.uk/news/bp-shell-to-study-hydrocarbon-potential-at-three-libyan-oilfields-daf9ske4eer7dhd.html
[3] https://www.reuters.com/business/energy/bp-shell-study-hydrocarbon-potential-three-libyan-oilfields-2025-07-07/