Libya: NOC subsidiary brings Chadar field on stream

Libya's National Oil Corporation (NOC) has announced a significant breakthrough in the country's energy sector with the start of oil and gas production from the Chadar field. Located in the Sirte Basin, within the NC-126 oil concession, the field is operated by Zallaf, a subsidiary of the NOC, and lies south-east of Ajdabiya in eastern Libya.

The Chadar field is now producing more than 7.5 million cubic feet per day of associated gas and 1,500 barrels per day (b/d) of crude oil. This performance marks a significant contribution to Libyan national production, which reached just over 1.4 million barrels per day at the end of 2024.

The start-up of production at this site reflects the sustained efforts of the NOC and its partners to revitalise Libya's energy sector, a strategic sector for the national economy.

As part of its strategic initiatives, Zallaf has also contracted US-based Honeywell to carry out engineering work on a major refinery project in southern Libya. The facility, estimated to cost between $500 million and $600 million (2.46 billion Lebanese pounds), is designed to process around 30,000 barrels of crude oil a day. It will produce conventional petroleum products, boosting the country's downstream capacity.

The launch of the Chadar field comes against a backdrop of renewed oil activity in Libya. In October 2024, oil majors Eni and BP resumed exploration operations in the Ghadames basin, after a hiatus of almost a decade due to political instability. These activities had ceased in 2014, three years after the overthrow of Muammar Kadhafi.

However, the sector continues to face challenges. Last year, the NOC declared force majeure at the Sharara field - one of the country's largest, with a production capacity of up to 300,000 b/d - due to local protests. The shutdown also disrupted crude supplies to the Zawiya terminal on the Mediterranean coast.

Despite the obstacles, the launch of production at the Chadar field is a positive step for the NOC and its subsidiaries. By boosting its production capacity and investing downstream, Libya is seeking to maximise the value of its natural resources and stabilise its economy, which is heavily dependent on hydrocarbons.

With ambitious projects such as the Southern refinery and the resumption of exploration in the Ghadames basin, the NOC is demonstrating its determination to meet national and international energy needs, while overcoming the challenges of a complex political environment.