NOC chairman announces Libya’s first oil bidding round since 2007

The Chairman of Libya’s National Oil Corporation (NOC), Masoud Suleiman, has confirmed that more than 37 international oil companies have expressed keen interest in the forthcoming oil licensing round scheduled for November, including major players such as the US-based Chevron, France’s Total, and Italy’s Eni.

In an interview with Bloomberg published on Wednesday, Suleiman said: “Virtually all international oil and gas firms are competing in the licensing round, which comprises 22 new onshore and offshore blocks.” This will be Libya’s first licensing round since 2007.

Suleiman disclosed further details, explaining that successful companies will be responsible for the costs of seismic surveys and other exploratory activities. These costs may be reimbursed should commercially viable quantities of hydrocarbons be discovered.

He added that the NOC is awaiting approval of a $3 billion development budget aimed at increasing oil production to 1.6 million barrels per day within approximately one year.

According to Suleiman, this budget will be allocated to develop companies such as Akakus, operator of the Sharara oil field, as well as other state-owned enterprises. He also noted that development of the North Jalu field would enable Waha Oil Company to raise its daily output by an additional 100,000 barrels.

In a related development, Suleiman pointed out that the government has earmarked 20 billion Libyan dinars for fuel imports this year. However, he emphasised that this amount will not suffice to meet total domestic demand, which costs around $600 million per month. Consequently, the NOC may seek further funding.