Libya has declared Austrian energy company OMV’s Essar oil discovery commercially viable, marking another step in the country’s drive to revive its oil sector and increase crude production after years of political instability and conflict.
The Libyan National Oil Corporation (NOC) said the Essar discovery, located in Concession 103 in the Sirte Basin, passed its technical and economic evaluation following the drilling of the B1-106/4 exploration well. The field is estimated to contain 195 million barrels of recoverable oil in the Upper and Lower Sabil reservoirs.
Initial production is expected to reach around 5,000 barrels per day, with development to be undertaken by Zueitina Oil Operations Company. The NOC said the project’s proximity to existing production facilities and surface infrastructure will allow development to be fast-tracked, enabling oil to reach the market sooner than would normally be possible for a new discovery. The declaration follows OMV’s return to exploration activities in Libya after more than a decade.
The Austrian company resumed drilling in 2024 for the first time since Libya’s 2011 uprising, leading to the Essar discovery in late 2025. The project forms part of Libya’s broader strategy to restore investor confidence in one of Africa’s largest oil-producing nations. Despite holding the continent’s biggest proven crude oil reserves, Libya’s production has been repeatedly disrupted by armed conflict, political divisions and blockades of oil facilities over the past decade.
In recent months, the country has intensified efforts to attract international investment through a new licensing round and fresh exploration agreements with major energy companies. Eni secured a new offshore exploration licence earlier this year in partnership with QatarEnergy, while MOL Group, Repsol and Türkiye Petrolleri (TPAO) signed a production-sharing agreement for offshore exploration in the Mediterranean.
The renewed investment drive is supporting Libya’s ambition to increase crude production beyond the 1.4 million barrels per day currently being produced and move towards its medium-term target of 2 million barrels per day. Commercial discoveries such as Essar are expected to play an important role in achieving that objective.
For international energy companies, Libya remains one of the world’s most attractive frontier oil markets because of its vast untapped reserves, relatively low production costs and proximity to European export markets. The commercial approval of the Essar field signals that, despite ongoing political challenges, investment in the country’s upstream oil sector is gathering pace as Tripoli seeks to re-establish Libya as a leading energy producer in Africa and the Mediterranean.
