KEY POINTS
- Chadar field begins producing gas and crude oil in Libya.
- Honeywell contract supports the development of the South Refinery project.
- Libya’s oil output reaches 1.4 million barrels per day by 2024.
Libya’s National Oil Corporation (NOC) has announced the commencement of oil and gas production at the Chadar field, also known as NC-126, located in the Sirte Basin southeast of Ajdabiya.
The project is being managed by its subsidiary, Zallaf for Oil and Gas Co.
Also, on the first day of operations, the Chadar field achieved production rates exceeding 7.5 million cubic feet of associated gas per day and 1,500 barrels of crude oil daily.
This increased the total Libya’s oil production by adding up to its production which was slightly above 1.4 million barrels per day at end of year 2024.
Strategic partnerships support development of Chadar field
Zallaf’s efforts at the Chadar field are part of a broader initiative to bolster Libya’s energy sector. In March 2023, the company signed a contract with U.S.-based Honeywell for engineering work on the planned South Refinery project.
According to Reuters, The refinery, estimated to cost between $500 million and $600 million, will process 30,000 barrels of crude oil per day into conventional petroleum products.
Nevertheless, the partnership confirms Libya’s willingness to rely on international experience in order to improve the efficiency of oil production and refining.
Chadar field marks a step toward sustainable energy output
The start of the Chadar field is strategic for Libya’s oil and sector because it contributes to stability and has the potential to keep the supply going to global markets.
Also, the field workers have been depicted carrying out their activities surrounded by pipelines and heavy trucks, showing that the country has continued to review its infrastructure.
However, with Libya still in a process of reconstruction, and further increasing the capacity of the energy sector, the Chadar field can significantly enhance Libya’s economic growth and the energy security.
