KEY POINTS
- Eni restarts offshore drilling in Libya after five years of inactivity.
- Libya aims to increase oil output to 2 million barrels daily.
- The move signals renewed confidence among global oil companies in Libya’s energy prospects.
After a five-year hiatus triggered by the Covid pandemic, Italy’s Eni has resumed drilling operations offshore Libya, marking a cautious but significant step back into one of North Africa’s most volatile oil markets. The step highlights a gradual return of confidence among global energy majors as the North African nation works to restore stability and ramp up production.
Renewed activity signals market confidence
According to the National Oil Corporation (NOC), Eni restarted work at Block 16/4 in Libya’s northwestern offshore region and is nearing completion of an exploration well initially begun in 2020. The project’s revival marks the company’s first major activity in Libyan waters since operations were halted.
The renewed operations follow similar steps by Shell, BP, and ExxonMobil, which have all recently signed agreements with Libya’s NOC for new exploration projects. These partnerships, once unthinkable amid the country’s years of political upheaval, suggest an improving environment that is beginning to draw back international capital.
Eni offshore drilling in Libya supports growth
In July, the NOC inked a memorandum of understanding with BP to conduct studies for hydrocarbon exploration and development in the Messla and Sarir fields, alongside neighboring zones. Separately, Shell agreed to assess prospects in the al-Atshan field, conducting a technical and economic feasibility study for potential full-field development.
The flurry of new deals reflects Libya’s ambition to expand its energy output. The NOC has laid out an aggressive plan to raise national oil production to 2 million barrels per day by 2028. More recently, the corporation said it aims to reach that milestone by the end of this year—a bold target that will test both the country’s infrastructure and its fragile political calm.
As of late September, Libya’s crude output hovered around 1.39 million barrels daily, slightly below August levels. Even so, the return of major players like Eni highlights renewed optimism that Libya’s energy sector may finally be regaining momentum after years of disruptions.
