Libya announces new oil field discovery with estimated reserves of 195M barrels

Libya's National Oil Corporation (NOC) announced Friday the discovery of a new oil field, named the "Eassar," with estimated reserves of about 195 million barrels and an expected production capacity of around 5,000 barrels per day.

In a statement, the state-owned corporation, which manages Libya's oil and gas sector, said the discovery was made by Austria's OMV following the drilling of the B1-106/4 well and the completion of an evaluation of the company's proposed development plan, which confirmed the field's commercial viability.

It said the discovery is estimated to hold about 195 million barrels of oil in the Upper and Lower Sabil reservoirs in the Sirte Basin, which lies in central Libya and extends eastward.

The NOC said the field is expected to produce around 5,000 barrels per day.

It added that Zueitina Oil Operations Company, a subsidiary of the NOC, will oversee development of the discovery as operator.

The corporation said the field’s proximity to existing surface facilities will help accelerate development and bring it into production as soon as possible, supporting higher output and strengthening Libya’s oil sector.

On Dec. 5, 2022, Libya’s internationally recognized Government of National Unity lifted force majeure on oil and gas exploration activities and called on international oil companies to resume operations.

Libya currently produces more than 1.4 million barrels of oil per day, according to the latest statistics published by the NOC on its website.

Exempt from OPEC production cuts, Libya relies on oil revenues for about 90% of its state budget and holds Africa’s largest proven oil reserves.