Libya and OMV Declare 195-Million-Barrel Essar Oil Find Commercially Viable

Libya’s National Oil Corporation and Austrian firm OMV declared the Essar oil discovery commercially viable on July 17. The decision followed drilling of well B1-106/4 and review of the development plan submitted by OMV. Total reserves stand at 195 million barrels in the upper and lower Sabil reservoirs, with expected production of about 5,000 barrels per day.

Development work will start under operator Zueitina Oil Operations Company, aided by the site’s proximity to existing surface facilities. The announcement forms part of Libya’s broader effort to attract international partners. The country held its first oil and gas bid round in 18 years during 2025, after the previous round in 2007.

Last month the National Oil Corporation signed exploration and production-sharing agreements from that round with Repsol, Turkish Petroleum, Eni, QatarEnergy and MOL. Libya’s oil output has reached roughly 1.4 million barrels per day, the highest level in more than a decade. Officials aim for 1.6 million barrels per day by the end of 2026 and 2 million barrels per day in later years.