Spanish energy giant Repsol has resumed oil exploration activities in Libya after a hiatus of over a decade. The announcement, made by the National Oil Corporation (NOC) of Libya on December 31, 2024, marks a significant milestone in the country’s oil sector.

Repsol, which had suspended its operations in Libya during the country’s civil unrest and subsequent political turmoil, has now returned to the Murzuq Basin, located in the southwestern part of Libya. The oil company has initiated drilling operations at a well situated approximately 12 kilometers from the Sharara oil field, Libya's largest oil field and a key asset in the country's oil industry.

The NOC welcomed Repsol’s return, highlighting the significance of the company’s drilling activities in the Murzuq Basin. The Sharara field, which Repsol operated before its withdrawal, has been one of Libya's most productive oil fields, and the company’s expertise is expected to play a key role in optimizing the field's production capacity. The Spanish firm had been a partner in the field's development for several years before political instability forced it to cease operations in 2014.

Libya’s oil production currently hovers around 1.2 million barrels per day (bpd), but the country has the potential to produce much more with foreign expertise and investments.

The move is seen as a positive development for both Repsol and Libya’s oil industry, which is central to the nation’s economy. The country holds Africa's largest proven oil reserves, and oil and gas exports are critical to its financial stability. Despite challenges related to security and governance, Libya's oil production has been recovering in recent years, with the government and NOC working to attract foreign investments to revitalize exploration and production activities.

Repsol's return to Libya follows a broader trend of foreign oil companies gradually resuming operations in the country as the political situation stabilizes. Many international oil firms had previously pulled out of Libya in the wake of the 2011 uprising that toppled long-time leader Muammar Gaddafi, followed by years of conflict between rival factions. However, with improved security and ongoing reconciliation efforts, foreign companies are now cautiously re-engaging with Libya's energy sector.

Repsol's exploration efforts are focused on identifying new oil reserves and enhancing the overall productivity of the Sharara field, which remains vital to Libya's oil production. In recent months, the NOC has ramped up efforts to increase output from its oil fields and attract foreign investment to modernize infrastructure and expand exploration in new areas.