The Minister of Oil and gas in the National Unity Government, Khalifa Abdel-Sadiq, revealed plans to launch the first tender for energy exploration contracts, and efforts to return major oil companies that have stopped producing to the country.
Abdel Sadiq said, in an interview at the “ADIPEC Energy Conference” in Abu dhabi, “The bidding round will include onshore and offshore sites, and will take place either at the end of this year or in early 2025. He added that the sites will include the Sirte, Murzuq and Ghadames basins,” according to what the agency reported. Bloomberg.
According to the minister, “production has recovered, and now exceeds 1.3 million barrels per day, which is the highest level in years.” “Developing the fields that have already been evaluated could raise this number to 1.6 million by the end of 2025,” he said.
He added that “the country is also holding talks with five international oil companies that have expressed interest in returning to work in Libya next year,refusing to identify them,” confirming that the Spanish company “Repsol” is preparing to resume similar operations in the Murzuq Basin,while the “OM” company will resume in “operations in the Sirte Basin within weeks.”
Oil production rose to more than one million barrels per day for the first time in two months, after resolving the recent political crisis, which limited production and exports in the country.
The Italian company Eni and BP resumed drilling last month, ending a hiatus since 2014.
The minister revealed that the ministry is working with “Suncor,” “Total,” “winter Shale,” and others, to “resume their exploratory activities in the country.” Simultaneously occurring, the Algerian company sonatrach “will begin drilling sometime this year or early next year.”
Abdel Sadiq noted that “when fields are closed, water settles, causing corrosion and weakening the infrastructure,” and added that maintaining current production, let alone increasing it, requires an upgrade in facilities, considering that “every time we press to increase production We are facing all these leaks and crises,” stressing that the government is trying to “upgrade or replace the infrastructure in a way that enables it to survive any sudden closure, in order to maintain the continuation of operations.”
He also revealed that the government is planning projects worth $17 billion in the coming years to modernize and build new infrastructure,and develop the fields that have been evaluated,and might potentially be able to produce up to 300 thousand barrels per day,pointing out that the country aims to produce 1.4 million barrels by the end of this year. year, 1.7 million by the end of 2027, and two million barrels a year after that.
The country has the largest oil reserves on the African continent,and the National Oil corporation announced that Libya’s production of crude oil and condensates,on Tuesday,exceeded one million and 400 thousand barrels per day,achieving the highest reading recorded by local production indicators since 2013.
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last updated: December 5, 2024 – 12:21
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What impact will the new oil and gas tender have on foreign investment in the region?
Time.news Interview: Launching a New Era in Oil and Gas
Interview Partner: Khalifa Abdel-Sadiq, Minister of Oil and Gas, National Unity Government
Time.news Editor: Welcome, Khalifa Abdel-Sadiq. It’s a pleasure to have you with us today. You’ve recently made important announcements regarding the oil and gas sector. Can you share the highlights of your plans for launching the first tender?
Khalifa Abdel-sadiq: Thank you for having me. Indeed, we are excited to announce that we will be launching the first tender for oil and gas exploration and production under the National Unity Government. This is a important step towards revitalizing our energy sector and attracting foreign investment.
Time.news Editor: That sounds promising. What are the key objectives behind launching this tender?
Khalifa Abdel-Sadiq: Our main objectives are to enhance domestic production,reduce dependency on imports,and generate revenue that can be reinvested into our economy. By inviting international companies to participate, we hope to bring in advanced technology and expertise. This will not only boost our production capabilities but also create jobs and stimulate local economies.
Time.news Editor: It’s great to see a focus on local development. How do you plan to ensure openness and attract reputable international partners?
Khalifa Abdel-Sadiq: Transparency is a cornerstone of our approach.We’ll ensure that the tender process is open and competitive, with clear guidelines and criteria for evaluation. We’re also looking to establish strong partnerships based on mutual benefit, which means that we are willing to work closely with potential investors to address their concerns and create a favorable business environment.
Time.news Editor: Given the challenges faced in the oil and gas sector worldwide, how do you plan to mitigate risks and ensure the sustainability of thes projects?
Khalifa Abdel-Sadiq: sustainability is critical. We plan to implement rigorous environmental assessments and ensure that operations adhere to international standards. Additionally, we are focusing on diversifying our energy portfolio, exploring renewable energy alongside customary oil and gas. This will help us future-proof our economy against market volatility.
Time.news Editor: That’s a forward-thinking approach.What role do you see innovation playing in the development of the oil and gas sector in your region?
Khalifa Abdel-Sadiq: Innovation will be vital. We are looking to integrate cutting-edge technologies like digitalization, advanced data analytics, and automation into our operations. This will increase efficiency, reduce operational costs, and minimize our environmental footprint. In fact, we’re already in discussions with tech firms that specialize in energy innovation.
Time.news Editor: How can local communities benefit from these developments in the oil and gas sector?
Khalifa Abdel-Sadiq: We believe that the local communities should be the primary beneficiaries of our natural resources. Our plans include local content policies that prioritize hiring and sourcing from local businesses. Additionally,we will invest in community development projects to improve education,healthcare,and infrastructure,ensuring that growth from the oil and gas sector translates into tangible benefits for the public.
Time.news Editor: That sounds great! As these plans move forward, what do you hope to achieve in the next few years?
Khalifa Abdel-Sadiq: Over the next few years, I envision our country becoming a key player in the regional energy market. We aim to not just increase our production capacity but to establish a reputation for stability and partnership. Ultimately, we want to create an energy sector that supports our economy and serves as a model for collaboration and innovation.
Time.news Editor: Thank you, khalifa Abdel-Sadiq, for sharing your insights and vision for the future of the oil and gas sector. We’re looking forward to seeing how these initiatives unfold.
Khalifa Abdel-Sadiq: Thank you for having me. I’m optimistic about what lies ahead, and we’re committed to making these plans a reality.