The role of national
and international
companies in
developing Petroleum
production
Prof, Edres A. Abualkhir
Exploration Department
Waha Oil Company
Tripoli - Libya.
Emailibelkhir@wahaoil.ly
Libya was the seventh-largest crude oil producer in OPEC and the third-largest
total petroleum liquids producer in Africa, after Nigeria and Algeria, in 2023.1
At the beginning of 2024, Libya held 3% of the world's proved oil reserves and
41% of Africa’s proved oil reserves.
At the beginning of 2024, Libya held Africa’s largest proved oil reserves, at 48
billion barrels, representing 41% of the continent’s total reserves. Libya ranked
in the top 10 countries for global proved oil reserves.
About 95% of Libya’s recoverable reserves are located in the onshore Sirte
Basin in the northeast and Murzuq Basin in the southwest. These two basins
also account for most of the country’s oil production capacity. Most of Libya
Summary
remains unexplored for oil, and ongoing civil unrest has prevented a large-scale
exploration program. Libya produces mostly high-quality light, sweet (low
sulfur) crude oil grades, which can be processed into valuable petroleum
products in simple refineries.
Libya’s production could return to pre-2011 averages if the various political
factions could form a unified and stable government, attract foreign investment
for exploration and development projects, and provide sufficient revenue to
strengthen the country’s an old oil infrastructure.
Libya’s NOC intends to increase crude oil and condensate production to more
than 1.5 million b/d by the end of 2024 and 2.0 million b/d by 2030.
Despite the numerous challenges to maintaining oil production, the NOC kept
oil production stable in 2023 and through July 2024 by starting production from
new wells and rehabilitating existing wells across the country.
2
Fuels of all kinds, liquid and gaseous, are a two-sided strategic commodity in times of
peace and war, as they have become the approved standard. It is necessary to
determine the extent of the progress of a country and the extent of its prosperity. Libya
is considered a country that produces and exports fuels, which constitute the
backbone of its economy, although it is rich in quantity and a huge type of Renewable
natural resources.
Since its independence, Libya has worked to control the hydrocarbons sector as a
strategic sector. With the aim of benefiting And the optimal exploitation of its internal
Introduction
energy resources, which is what made it pay special attention to the legal and
institutional framework that governs this.
The sector, which was distinguished by the issuance of several laws and regulations
clarifying and regulating how the petroleum industry is practiced.
The great development witnessed by national companies in the oil field, for example,
is particularly notable for NOC and subsiders after it was...
The aim of its establishment in the beginning was to extend its sovereignty over its
wealth, and after it had made significant strides in this field, its strategies changed.
This is what it was able to achieve until it became recognized by international oil
companies and sometimes partners with them. In order to exploit oil fields.
This new reality imposed itself on the oil industry, and this is what made specialists
speak on many occasions about the companies’ ability National competition to
compete with international companies.
3
The Oil and Gas Value Chain & Where we
operate as the NOC
Acquisition of
exploration rights and
search for hydrocarbons
below earth’s surface
The movement &
storage of
Developments of oil hydrocarbons using
fields and extraction of pipeline & ships & The refining, processesing
hydrocarbons from value chain and blending of hydrocarbons
reserves maximisation & to make fuels & chemical
Renewables initiatives products
4
Oil windfalls have opened a window of great opportunities for
Libya:
• Libya's economy has become more prosperous
Motivation • Able to build a modern infrastructure
and • Provide extensive social services to its residents
Objective • Established a develop welfare system
• Strengthened macroeconomic indicators
The oil sector continues to play a central role in the country's
development, as government spending through oil revenues is a
main driver of growth.
5
Four factors that determine the role of Libya in the
global oil and gas market:
Motivation • the size and production life of Libya’s oil
reserves,
and • the diversity of Libya's oil export outlets,
• the role of oil in the national economy.
Objective • Country Location.
Oil is crucial for Libya economy but may create
challenges for sustainable and long-term
development due to rapid structural changes in
the energy market.
6
Importance of the • Major driver of the global economy.
petroleum industry to the
global economy
• The main source of energy for transportation,
manufacturing, and other industries.
• Generates significant revenue for
governments and private companies.
• Strategic tool
7
EXPLORATION
FUTURE
INVESTMENT of • TO DISCOVER REMANNING POTENTIAL
Oil and Gas Sector • CONVENTIONAL DEEP TARGET, SMALL
POOLS, Stratigraphic Traps.
• Non-Economic traps, result of Oil losses
during migration path.
UNCONVENTIOAL
• SHALE-GAS, Shale-Oil and Tight Reservoir
DEVELOPMENT
• Drill horizontal and vertical production wells
• EOR- DEPLETED FIELDS to enhance the oil
recovery.
8
▪ Libya wants to expand its base of fossil fuel reserves through
exploration efforts in all regions of the country for all types fossil
Fuels, conventional and unconventional, through the application of
new technologies that allow rational exploitation of existing
resources by increasing Production rates.
▪ This will require great effort, and the contribution of foreign partners
is crucial, to promote the development of Oil & Gas sector. and
increasing the attractiveness of the Renewable energy sector, which
is still not yet exploited.
Strategy ▪ The development of the hydrocarbon Production sector depends
mainly on the measures that will be taken in the short term. Medium
and long term, which may be legal, financial, contractual, studies and
research to improve our knowledge of the basins’ potential.
▪ On the legal and financial level, Libya decided to review the system
with the aim of improving the attractiveness of the Oil & Gas sector
and the profitability of projects. contractor, as well as reviewing the
legal framework related to research and development activities. With
the establishment of a new coherent system And attractive.
NOC and its subsidiaries
• National and international companies operating in the oil and gas sector have played a major role in
implementing plans to increase the production capacity of the Libyan state in all previous and current eras.
• This is evident from the Libyan oil sector’s reliance on multiple partnerships with foreign multinational
companies and different contracting patterns during various time periods, but it has declined significantly in
recent decades due to the political circumstances that the country has gone through.
• Waha Company is one of the companies operating under the umbrella of the National Oil Corporation and
one of the largest companies owning exploration concessions and in terms of production quantities.
• Waha Company adopted the National Oil Corporation’s policy and drew up an ambitious plan to increase
production through multiple projects. Next slides show and explain the project models.
2.25
BBO 6
Waha Oil
9
Company
Reserves 15
50
Waha Oil Company Reserve Produced OOIP REC Produced Remaning To be find
Gas 12.00Tcft 3.00 Tcft
11
Spare Capacity Change
Increasing:
• Developing Brown Fields (Infill drilling, IOR, ...) Compensate for the natural decline
• New Fields on Production (New discoveries, Reserves become economic, ...)
• OPEC+ Cuts
Decreasing:
• Production Decline (Natural decline, Force majeure,...)
• More Demand.
2027 Strategic Crude Oil Production Targets in MMBOPD
Production The strategic target increases gradually throughout the years
Increase to reach a total of
To reach
600,000 BOPD
up to end of
year 2027
2027
2026
2025
Current Waha
2024 production
2023 capacity of crude
oil is 360,000
BOPD.
development projects that contributes to enhancing crude oil production in Waha
❖ Drilling Deepen wells.
Production ❖ Water injection.
Increase ❖ Steam injection.
❖ Building new gathering centers facilities.
❖ Well maintenance and Workovers.
120000
100000
❖ Research and development of new techniques that will increase
80000 Oil production Capacity are being studied and implemented.
New discovries
60000
Infill wells
40000 EOR, IOR
New Expolration
20000
0
Increse
production to
target of 600,000
BoPD
New discovries 100000
Infill wells 100000
EOR, IOR 20000
New Expolration 20000
Rate
How to 10%
Increase
Waha 30%
60%
Reserves?
EXP Unconventional IoR/EoR
15
Waha Oil Company is the biggest operating Company
with over 52,000 sq Kms area in the Sirt Basin.
These Concessions are scattered all over the Sirt
Basin, covering Maily high potential areas on the
platforms and in the troughs.
Exploration
Mature: Located around the main fields, and there is
the availability of infrastructure for development and
transportation, and rapid mobilization of reserves.
Emerging: Requires increased exploration efforts (data,
studies, and drilling), and the possibility of the
emergence of new oil areas.
Frontier: These are areas with few or no development,
and there is a lack of infrastructure that requires the
identification of oil systems.
Long-Term Work Program
Developing a long-term exploration work program requires not only a ranked set of opportunities but also requires an understanding of
what opportunities are economically suitable.
In many ways what is being presented here as a “long term exploration work program” is fundamentally a prioritized set of technical
evaluations which it is will lead to significant exploration opportunities.
The ranking of the Waha play areas relies upon forecasted prospects, historic field size distributions and regionally developed play
risks.
Long term work program scenarios are developed in this report. They are comprised of geologic studies, seismic acquisition and the
drilling of wildcat.
G&G Seismic G&G G&G Wildcat drilling
Studies Projects
Anticipates initial This task would be
regional work to followed by a data But could include third phase is prospect
broadly define the acquisition phase, core analysis, generation and comprises
play elements and most usually seismic petrography etc. the detailed prospect
their risks, the aimed at better mapping, reservoir
prospect/lead defining the description, volumetric
prospects. determination, risking and
economics. 17
Sources of
Field Reserves
Growth
Addition
(Shallower Pool)
Revisions/
Improved Recovery Addition
Extension (Satellite)
(Structural)
Extension
(Stratigraphic)
Fields grow either by increases in
Hydrocarbons-In-Place (extensions,
additions) or by increases in Addition
Recovery actor (revisions, improved (Deeper Pool)
recovery)
Un-discovered Risk
Resources Waha
15.6 Regional Study-
Remaining
2007
USGS Report New Estimation Of
Undiscovered 12.9 Un-discovered
Hydrocarbon RRR IN Sirte
Basin
Potential
Potential in WAHA 10
Acreage
2.763
2.25
1.765
Sirte Basin WAHA Acreage
Study Prospective area Potential to find entire Sirt Basin RRR Waha acreage
USSG 230,000 Sirt Basin 10 bbl 1.76
Waha 2P Waha acreage 15 bbl 2.75
Waha Local team Waha acreage 12 bbl 2.25
Number of prospects Based on this result Only in Waha acreage would be 130 prospect In entire Sirt basin Total would be
more than 500 prospect
Considering to drill two out Assumed rate of success 20% Would be to drill 200outpost well Total wells would be drilled in Sirt
post for successful prospect Basin 700 19
Discovery Wells : 2010 to 2015
Well Name Conc. Name Initial Class On Sh./ Off Sh. Year Basin Status
UU1 71 A-3 On 2010 Sirte Oil
6P1 59 A-3 On 2010 Sirte Oil
G2 71 A-1 On 2010 Sirte Oil
6R1 59 A-3 On 2010 Sirte Oil
6Q1 59 A-3 On 2010 Sirte Oil
O1 NC98 A-3 On 2010 Sirte Oil
P1 NC98 A-3 On 2010 Sirte Oil
6P2 59 A-2b On 2012 Sirte Oil
6Q2 59 A-1 On 2012 Sirte Oil
P2 NC98 A-1 On 2012 Sirte Oil
Q19 59 A-3 On 2013 Sirte Oil
6P3 59 A-1 On 2013 Sirte W.O.T.
UU2 71 A-1 On 2014 Sirte W. T.
6R2 59 A-1 On 2014 Sirte W. T.
O2 NC98 A-1 On 2014 Sirte Suspanded
S1 31 A-3 On 2014 Sirte Suspended
20
Example form 6J-14 area showing HCs in
Tight Carbonate
Tech-log analysis over Tagrieft Fm of 6J14-59
6J14-59 Well
KB: 347’
9 5/8” CSG SHOE @ 9663’
TAGRIFET 10068’ (-9721’)
7” LINER (9220’-10762’)
STRONG GAS KICK
C1=72% C1/C2=6.5
C2=11% C2/C3=.87
Gas Bearing
Top of Tagrieft
C3=12% C1/C4=4.5
@100680ft
Promising
• Reached Tagrifet Fm at 10068’ (-9721’) -61’ lower than 4E2a-59
Horizon Well,
+27’ higher than 6J8-59 well.
• A gas kick was encountered @10140 ft.
• To kill the well, mud weight was increased up to 13 ppg,
• Shut in well & recording pressure, sidpp = 1000 psi & sicp = 900 psi,
increased mud weight from 10.7 to 13 ppg and start control well with
driller method by 13 ppg kill mud, pumped 675 bbl of mud,
flow rate = 195 gpm,
L. SIRTE SH 10418’ (-10071’) final control drill pipe pressure = 1000 psi and casing pressure 0 psi,
mud weight out 12.6 ppg, stop pumping and open pipe rams,
check hole, no flow.
• Circulate & condition mud with full return, mud weight in = 12.7 ppg
Possible HC Bearing & mud weight out = 12.3 ppg
O.D.T @-9923’
ETEL 10682’ (-10335’) • No core was cut in the hole
Shale oil
575 Shale gas Tscf
Rec
Tec R.R
Unconventional
Bbl
250
220
120
60 60
22.5 24 20
6.5 0.5 3
Bbls Shale oil Shale gas Tscf Rec Tec R.R
Sirte Basin 22.5 575 220 60
N.W Libya 6.5 250 120 24
Cyrnica 0.5 60 20 3
22
Total 29.5 885 360 87
31.5
Well
31.0 F1-NC57
Synthetic
A 1-106
30.5
M 1-11
C1-5
30.0 OO1-11
A 6-17 M 1-6
H1-32
E1-17
29.5 P1-32 3A 1-11
L1
N1-11-11 A 1-11 Z1-13
Q1-11 Y 1-13
29.0 A A-1
4K1 1-1
11 CC1-20 B 1-13
F1-13
Future Gas
4I1-11 X 1-47 3Z1-6
28.5 B 1-78 J1
II1 -47
-47 3B 1-6
I1-57 H1-47
3M 1-59
G1-78 3D1-59
F3-59
A 1-59F
C1-78 R1-59
28.0
Potential in
G1A -72
D1-85 GG1-71
H1-72 SS1-71
F1-72
27.5 C1-85
A 1-NC30C CC1-71
Sirt Basin
27.0
E1-72
26.5
15.5 16.0 16.5 17.0 17.5 18.0 18.5 19.0 19.5 20.0 20.5
Areas of Excellent future for Shale Oil & Shale Gas
Potentials in L. Sirte and Tagrift Shale's gas kick
occurred whilst the drilling operation
• North Africa will continue to be the least cost gas supplier for EU due
to its geographical proximity and low production cost..
• Shale gas resources have been identified in Algeria, Libya and Tunisia
in four formations in the Ghadames and Sirte Basins, Shale gas
Future Gas resources have been identified in Algeria, Libya and Tunisia in four
formations in the Ghadames and Sirte Basins
Potential in • Gas is playing an increasingly important role in the region's energy
mix, meeting growing power demand and also providing an important
North Africa revenue source.
Region • Moreover, with huge gas reserves and its new discoveries, further
development and prospects of LNG markets and cross-border pipelines
are anticipated.
• Development of Africa’s unconventional gas resources - largely in
North Africa & South Africa - could substantially add to the potential
new supply.
Summary Table
Four countries in North and West
Million Cubic Ft Global Rank
Africa (Algeria, Egypt, Libya, and
Nigeria) account for over 80 per cent (MMcf)
of the continent’s total gas Gas Reserves 53,000,000 21st in the world
production and consumption. Gas Production 591,526 40th in the world
Less than ten African countries Gas 158,564 60th in the world
Consumption
are presently exporting gas by
cross-border gas pipelines or LNG Yearly Surplus + 432,962
tankers or both. Gas Imports 0
Gas Exports 251,090
Net Exports 251,090
25
FLARING REDUCTION IN WAHA OIL COMPANY
CONCESSIONS
• Several projects and actions are undertaken by WAHA OIL COMPANY to reduce gas flaring volumes on the
sites
• A method for estimating gas flared volumes on WAHA Concessions and sites has been developed by
satellite, with the collaboration of NOC Space Agency.
• Conclusion: it is necessary for producing Companies to carry out their own measurements and to rely on
their national skills to deliver real measurements of their GHG emissions, in consultation with international
bodies in the topic.
• One of the future projects plan for Libya NOC to includes CCS/CCUS (Carbon Capture and Storage, Carbon
Capture, Utilization and Storage) in its strategy as means to explore and integrate circular carbon economy.
• Circular economy concept (CCUS) in blue H2 production, is considered as a future project as solution to
reduce emissions and apply low carbon climate strategies.
Future Gas Potential
Geology of Southern Libya 2012, vol. II , pp 00-00 - SL-149
Hydrocarbon Generation, Migration, Accumulation and
Gas Potential in Sirt Basin, Libya
New advanced technology and 3D seismic surveys will
increase the chance of finding more gas reserves in the
deep troughs. NOC has granted open areas through bids
to many oil companies. Parts of these open areas have
very good gas potential – for instance Cyrenaica platform,
and offshore Binghāzī (Concession 29). All these areas
require the application of advanced new technologies to
discover the remaining gas fields. According to some
studies Libya, through the application of high-tech
systems, is now one of the largest exporters of natural
gas. New pools have
• Major geographic advantage
• Libya has very rich oil and gas potential.
• >100 BBO ultimate recoverable reserves from conventional and
unconventional.
Opportunity • Big opportunities for increasing production Capacity.
• Exploration (existing and frontier basins).
• Improved reservoir management.
• Enhance oil recovery
28
Absence of
strong
government &
occupation of
oil fields and
Overseas terminals from Destruction of
Investments the militias infrastructure.
Transportation Security is
Challenges
, refining, severely
service lacking or
companies entirely absent
Challenges
Regulation,
Licensing, Environmental
Exploration, impact
production
Very complex
license Technology
position (many challenges
players)
29
Recommendations
Amend the 1955 petroleum law and regulations to incorporate provisions that facilitate and
incentivize the exploration and extraction of unconventional "shale gas" resources, offering
favorable contractual and fiscal terms to attract investment in this sector.
Conduct a comprehensive reevaluation of the geology, geochemistry, and reservoir
characterization data for all dry hole wells across sedimentary basins of Libya.
Unconventional reservoirs like tight sand or shale gas must be acknowledged as pivotal
future strategic initiatives and granted to exploration companies through suitable allocations
and agreements.
Environmental safety is strongly encouraged, and this project is not only commendable but
also conducive to activities within Greenpeace areas.
Given the growing demand for gas and the upward trend in gas prices, harnessing this
resource from the earth has become an increasingly attractive option. We are now giving
serious consideration to taking steps towards the potential re-award of this valuable
resource.
Initiate a pilot test project in one of the prospective areas to evaluate the potentiality and
productivity of the “Shale Gas” play in this area.
30
• The size and volume of the remaining hydrocarbon in Libya is world class, and it will
open a wide door for future investment in exploration and production.
• The recent giant discoveries together with large discovers have been made in Libyan
Basins,(Sirt and Mourzq), show that the four major prospective Basins in Libya still
have a significant future potential, However, there is still plenty of room to search in
Libya, and renewed interest by the international industry could yield new giants.
• This significant kind of investment will help to discover and add new reserve via
exploration and reservoir management. The effectiveness and efficiency of future
exploitation of this resource depends critically on the new legal framework and
Conclusion executive institutions that Libya chooses to create.
• Libya has tremendous future potential to play a significant role in the oil and gas
industry in upstream and downstream investment.
• New information increases the chances for Libya to boost the reserves through
explore remaining potential and shale gas and shale oil.
• The four prospective basins in Libya are still underexplored and the boundary of the
source rocks are not well known, offering the opportunity to penetrate new source
rock in the deepest part of the basins (the deep troughs).It is believed the low porosity
(tight) rocks contain significant volumes of hydrocarbons.
QUESTION?
Thank You!
Prof, Edres A. Abualkhir
Exploration Department
Waha Oil Company
Tripoli - Libya.
Emailibelkhir@wahaoil.ly
