Oil Majors Shell and BP Resume Energy Projects Across Libya

Core Insights - Shell plc and BP p.l.c. have signed agreements with Libya's National Oil Corporation to assess hydrocarbon potential across three major oilfields, indicating a revival of foreign energy interest in Libya after years of instability [1][9] - Libya aims to attract global energy giants despite ongoing internal factional disputes and political instability [5][9] Group 1: Shell's Involvement - Shell has signed a memorandum with NOC to evaluate hydrocarbon prospects at the Atshan oilfield and other NOC-controlled areas, leading a full-scale technical and economic feasibility study for future development opportunities [2] - The company is focusing on assessing unconventional hydrocarbons, such as shale oil and gas, which require advanced extraction technologies [4] Group 2: BP's Strategy - BP plans to reopen its Tripoli office by the end of 2025, signaling a commitment to renewed exploration ambitions in Libya [3] - The company will conduct studies on the Messla and Sarir oilfields and nearby exploration areas to assess Libya's potential in unconventional hydrocarbons [4] - BP's original agreement with NOC dates back to 2007 but was suspended due to civil unrest; the force majeure was lifted in 2023, allowing onshore exploration to resume [8] Group 3: Libya's Oil Production Landscape - Libya, a member of OPEC, has faced significant fluctuations in oil production since the civil war, dropping from approximately 1.8 million barrels per day (bpd) in 2011 to around 100,000 bpd [6] - Recent production levels have stabilized between 1.2 million bpd and 1.3 million bpd, with a goal to increase output to 2 million bpd in the coming years [6][9] - Major international energy companies, including BP and Shell, have resumed drilling activities after a nearly decade-long halt, indicating a renewed push to revive Libya's energy sector [7]