The US oil giant Chevron will hunt for oil off Libya’s coast under a memorandum of understanding (MOU) signed with the North African Arab country at the weekend.

Conflict-battered Libya, an OPEC oil producer, is seeking to develop its offshore crude reserves by exploring untapped areas in the Mediterranean as part of a new strategy intended to increase its extractable oil deposits.

Under the deal, signed with the National Oil Corporation (NOC) in Tripoli, Chevron will conduct a comprehensive technical study of block NC146 off Libya’s Northwest coast.

NOC Chairman Masoud Suleman said Block NC146 is an unexplored area with encouraging geological indicators that could lead to significant discoveries.

He added that partnering with a global company the size of Chevron will broaden NOC’s horizons for transferring advanced technology and applying best practices in offshore exploration

Libya’s proven oil resources are officially estimated at around 48 billion barrels, concentrated mostly in onshore areas in the Sirte Basin in North-central Libya.

Last month, the country, which produces nearly 1.4 million barrels per day, concluded its first oil bidding round since 2007 with five oil exploration blocks awarded to companies from Qatar, Italy, Spain, Turkey, Hungary, U.S. and Nigeria.

Libya is pursuing oil development plans despite regional tensions and the fact that the country is split by rival factions into two Eastern and Western parts.

(Writing by N Saeed; Editing by Anoop Menon) 

(anoop.menon@lseg.com) 

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