BP and Shell will investigate the hydrocarbon potential of three oilfields in Libya

Libya’s National Oil Corp (NOC) announced in a statement on Monday that oil majors BP (BP.L) and Shell (SHEL.L) had reached an agreement to carry out studies for hydrocarbon exploration and development in three Libyan oilfields.

Due to conflicts between armed competing factions over oil profits, which frequently result in oilfield shutdowns, Libya, the second-largest oil producer in Africa and a member of the Organization of the Petroleum Exporting Countries (OPEC), has seen disruptions in its oil activities.

Libya has been in turmoil since Muammar Gaddafi was overthrown in 2011, and foreign companies have been reluctant to invest there. On the other hand, following a ten-year break, oil giants like as Repsol (REP.MC), BP, OMV (OMVV.VI), and Eni (ENI.MI) began exploration activity in Libya last year.

According to NOC, BP plans to reestablish its office in Tripoli, the capital, in the final quarter of 2025.

Additionally, it stated that it and BP had inked a memorandum of understanding for the use of studies to evaluate the potential for hydrocarbon production and exploration in the Sarir and Messla oilfields, as well as in some other exploration areas.

The state oil company also stated that it has reached an agreement with Shell to assess hydrocarbon potential and carry out a thorough technical and financial feasibility study in order to develop the Atshan oilfield and other assets that are wholly owned by the NOC.

According to the NOC website, the country’s oil production in the last 24 hours has hit 1.385 million barrels per day.