Libya has announced that it is seeking foreign investors for oil expansion in its first bidding round in over 17 years.
Oil officials said on Monday, that it is offering 22 areas for oil exploration and development in the new round, launched on March 3.
The new round will feature production sharing agreements (PSAs) as the country aims to attract foreign investment and boost oil output.
National Oil Corporation (NOC) Chairman, Massoud Suleman, told potential investors in London, that the blocks are evenly divided between onshore and offshore locations.
According to the NOC, Libya’s current crude production stands at around 1.4 million barrels per day (bpd), approximately 200,000 bpd below its pre-civil war peak.
The country is targeting a ramp-up in output to 2 million bpd.
Limitation of Foreign Investors
Foreign investment has been limited in Libya’s energy sector due to years of political instability and conflict following the 2011 overthrow of Muammar Gaddafi.
Frequent disputes between rival armed factions have disrupted oil production and led to repeated shutdowns of key oilfields.
Libya’s Oil Minister Khalifa Abdulsadek said the acreage on offer spans some of the country’s most prolific hydrocarbon basins.
They include Sirte, Murzuq, and Ghadamis, as well as offshore areas in the Mediterranean.
Need For Foreign Investors in OiI Expansion
In January, Abdulsadek told Reuters that Libya would need between $3 billion and $4 billion in investment to increase production to 1.6 million bpd.
NOC officials say the new round will adopt a Production Sharing Agreement model.
It will replace the stricter EPSA IV framework used in previous tenders, which had offered less favourable terms to investors.
Reuters
