BY COMFORT OGBONNA
Libya is set to sign a landmark 25-year oil development agreement on Saturday with France’s TotalEnergies and U.S.-based ConocoPhillips, involving a foreign-financed investment exceeding $20 billion, according to Prime Minister Abdulhamid al-Dbeibah. The agreement, made through Waha Oil Company, seeks to significantly boost the country’s oil production capacity, aiming to increase output by up to 850,000 barrels per day (bpd).
Dbeibah shared the news in a post on X, where he also highlighted that the deal would lead to net revenues of more than $376 billion. Currently, Waha Oil Company’s daily production ranges between 340,000 and 400,000 bpd under typical conditions. The agreement is expected to enhance Libya’s oil sector by raising production capabilities and ensuring a steady flow of revenue for the country.
Waha Oil Company, a subsidiary of Libya’s state-run National Oil Corporation, operates several major oil and gas fields. These include five key fields and additional smaller subfields, which are all connected through pipelines that transport crude oil to the Sidra oil terminal and send gas to processing facilities. The development agreement with TotalEnergies and ConocoPhillips will provide the funding and expertise needed to further expand these operations, helping to stabilize Libya’s oil output and increase global market share.
Additionally, Dbeibah announced that Libya would also sign a memorandum of understanding (MoU) with U.S. oil giant Chevron and a cooperation agreement with Egypt’s oil ministry. These agreements are scheduled to be formalized during the Libya Energy and Economy Summit, which is being held in Tripoli.
These agreements mark a significant moment in Libya’s recovery and future development, as they reflect a strengthening of the country’s relations with some of the largest and most influential international players in the global energy sector. Libya, once one of Africa’s top oil producers, has seen its oil production repeatedly disrupted over the past decade. The political chaos and civil unrest that followed the 2011 uprising, which led to the fall of Muammar Gaddafi, left the country divided between rival authorities in the east and west. Despite these challenges, Libya remains an essential oil producer with significant untapped potential.
With this agreement, Libya looks poised to strengthen its role in the global oil market, as the country’s government seeks to stabilize its oil production and boost national revenue. The ongoing partnerships with international energy companies will help ensure that Libya can recover from the setbacks caused by years of political instability and continue its journey towards rebuilding its economy.
Original article
Comments