Qatar’s UCC Holding signs Libya oilfield deal

• Production-sharing deal targets 80,000 bpd
• UCC to finance Ghadames basin project
• Libya courts Gulf oil investors again

Qatar’s UCC Holding has agreed to develop an oilfield in Libya’s Ghadames basin under a production-sharing deal with the National Oil Corporation, as the North African country pushes to lift crude output after years of conflict.

The agreement aims to boost crude production to 80,000 barrels per day.

State-owned National Oil Corporation (NOC), in partnership with the Libyan Investment Authority (LIA), signed the exploration and production-sharing agreement with UCC, NOC chairman Masoud Suleiman announced on Facebook on Wednesday.

Besides boosting crude output, the deal includes utilising associated gas for electricity generation, Suleiman said, adding that the project will be fully financed by UCC.

He described the agreement as an important step towards expanding partnerships with international investors and advancing development projects in line with the highest standards of safety and operational efficiency.

UCC is the second company from the oil-rich Gulf to sign a deal in Libya in a few weeks. Oman’s OQ Exploration and Production (OQEP) signed an agreement last month with Libya to seek oil and gas opportunities.

“This agreement is to expand our operations beyond Oman so our production will not rely only on exports from the strait,” Ashraf Al Mamari, chairman of state-run OQEP’s board of directors, told AGBI.

OQEP has already explored fields in Libya and is set to decide by the third quarter of this year on production and investment, he said.

Further reading:

Opec member Libya, hit by years of civil strife, has embarked on a drive to restore oil production to pre-war levels by admitting foreign oil investors.

NOC said in June that the North African Arab country’s crude output has climbed to its highest level in 13 years.

Crude output rose to about 1.4 million bpd and condensates to nearly 49,160 bpd to push the total oil output to 1.5 million bpd, it said.

Disruption in the Strait of Hormuz has increased the appeal of the North African producer to international oil companies after almost two decades of stalled activity.