The Libyan Investment Authority (LIA) has signed a strategic agreement with BP, aiming to deepen the two sides’ partnership.
Chairman of the LIA Dr. Ali Mahmoud Hassan signed the agreement at BP’s office in Cairo, with BP regional president Nader Zaki, on January 17.
The LIA said the agreement focused on exploration in the Ghadames Basin and in the Gulf of Sirte, on Blocks A, B and C. BP is working on the area in partnership with Eni and National Oil Corp. (NOC).
The LIA said the work was “one of the largest exploratory projects” in Libya, with exploration on- and offshore. A and B are onshore, while C is offshore.
The LIA and BP both expressed optimism on the partnership and “their confidence in overcoming the challenges”. Discussions also touched on new oil and gas projects in Libya, in addition to alternative energy projects.
Eni struck a deal with BP in 2018 on the area, each holding a 42.5% stake. The LIA held the remaining 15%. Under the agreement, Eni took over as operator. Libya approved the farm-out deal in November 2022.
The Italian company agreed to revoke force majeure on the A, B and C licences in August 2023. BP announced force majeure in 2014.
Eni said it would resume exploration, noting the proximity of some opportunities to facilities on the Wafa field.
The two onshore blocks, also known as Ghadames North and Ghadames South, are in Libya’s west, close to the border with Algeria.
While Eni appeared more positive about the area last year, problems have continued. Sharara, in Libya’s southwest, was taken offline earlier this month by local protests, which also spread to the El Feel field.
Libya also continues to be challenging politically. Eni, TotalEnergies and Adnoc are working to secure the licence for NC7. However, Oil Minister Mohamed Oun has opposed the deal, saying the contract terms are too generous to the foreign partners. The Attorney General is investigating the agreement.