Libya: New Oil Discovery Under Partnership with Algeria’s Sonatrach

by | Aug 13, 2025 | Algeria, Diplomacy, Economic, Libya

Summary:

On 12 August 2025, Libya’s National Oil Corporation (NOC) announced a commercial oil discovery in the Ghadames Basin with an estimated production capacity of 4,200 barrels per day (bpd). The basin lies in northwestern Libya, extending into southern Tunisia and eastern Algeria, with the field under the authority of the Tripoli-based Government of National Unity (GNU).

The discovery, identified as the A-65/2 field, was made by Algeria’s Sonatrach under an Integrated Project Management (IPM) approach, in collaboration with leading international and local companies.

The National Drilling Company was mobilizing Rig No. 11 to the new field to drill three strategic wells for Sonatrach-SIPEX, a subsidiary of Sonatrach. The NOC praised the company’s negotiation team for securing strategic partnerships that strengthen its position as a reliable partner in major drilling projects and meet global standards for integrated operations.

This achievement follows recent successes in reactivating rigs No. 13, 12, and 33, reflecting the NOC’s commitment to operational readiness, performance efficiency, and revenue growth. Production rates from the A-65/2 field are expected to exceed 4,000 bpd, supporting Libya’s ongoing strategy to expand its oil and gas reserves and strengthen its energy sector.

Additionally, the discovery reflects Sonatrach’s enduring engagement in Libya, stemming from its 2008 exploration and production license in the Ghadames Basin, with operations officially

Outlook: 

Announced by Libya’s National Oil Corporation under the authority of the GNU, the A-65/2 oil discovery in the Ghadames Basin points to the GNU’s ongoing efforts to strengthen its energy sector and attract further investment.

For Algeria, the deal revives Sonatrach’s presence in Libya after more than a decade, building on previous agreements with the GNU. Additionally, the announcement likely aims to secure Algiers influence in the Ghadames Basin, a contested area once threatened by Libya’s eastern government, underscoring its strategic importance for all parties.

The deal could deepen Algeria-Libya energy ties, but its durability will hinge on whether the GNU can retain control amid Libya’s divided political landscape and whether security conditions in the Ghadames region remain stable.


 

Explore our services or speak with our team of North Africa-based risk experts.