Libya’s National Oil Corporation (NOC) has approved the commercial development of the Essar oil discovery in the Sirte Basin after completing its technical and economic evaluation, clearing the project for production.
The discovery was confirmed following the successful drilling of well B1-106/4 and the assessment of a development plan prepared by OMV.
According to the NOC, the Essar field holds an estimated 195 million barrels of recoverable crude oil from the upper and lower Sabil reservoirs. Once operational, the field is expected to produce approximately 5,000 barrels of oil per day.
Development activities will be carried out by Zueitina Oil Operations Company. The project’s close proximity to existing oil infrastructure is expected to accelerate the start of production.
The approval forms part of Libya’s broader efforts to strengthen its oil industry and reclaim its position among Africa’s leading crude oil producers after years of political instability disrupted exploration and production.
With Africa’s largest proven crude oil reserves, estimated at around 48 billion barrels, Libya has stepped up initiatives to attract international investment into its energy sector.
In 2025, the country resumed oil and gas licensing rounds for the first time in nearly two decades, ending an 18-year pause in upstream exploration bidding. The move followed the last licensing round held in 2007, before the political upheaval that began in 2011.
Momentum has continued with new exploration and production-sharing agreements signed between the NOC and several international energy companies, reinforcing Libya’s strategy of expanding partnerships to unlock new reserves and boost output.
Libya is currently producing about 1.4 million barrels of oil per day, its highest production level in more than ten years. Authorities aim to increase production to 1.6 million barrels per day by the end of the year, with a long-term target of reaching 2 million barrels per day through the development of new oil discoveries such as the Essar field.
