Libya's National Oil Corporation (NOC) and Austrian energy firm OMV have declared the "Essar" oil discovery in the Sirte Basin commercially viable, a decision that advances Libya's campaign to rebuild its upstream sector with the help of returning international oil majors.
NOC said the discovery, made by OMV Austria at exploration well B1-106/4 in Contract Area 106/4, was confirmed commercially viable after evaluation of the development plan submitted by the Austrian company. Total reserves are estimated at 195 million barrels of oil, held in the upper and lower "Sabil" reservoirs, with expected production capacity of about 5,000 barrels per day (bpd).
The figure marks a substantial upward revision from OMV's initial estimate when the well was first tested in late October 2025, when the company had put contingent recoverable volumes at between 15 million and 42 million barrels of oil equivalent. Early production tests at the time recorded flows exceeding 4,200 bpd of oil alongside associated gas.
Development of the field will proceed under operator Zueitina Oil Operations Company, which has overseen drilling on the block since OMV resumed exploration there in October 2024, ending a 13-year hiatus. NOC said the site's proximity to existing surface facilities was expected to support fast-track development.
The declaration is the latest step in Libya's drive to reopen its upstream sector to foreign capital following years of civil conflict. The country held its first oil and gas exploration bid round in 18 years in 2025, and NOC last month formally signed exploration and production-sharing agreements from that round with Repsol, Turkish Petroleum, Eni, QatarEnergy and MOL. Other majors, including BP, Shell, Chevron, ExxonMobil and TotalEnergies, have also re-engaged with the country, with Chevron and TotalEnergies signing a 25-year, $20 billion development deal in January to raise output at the Waha project by as much as 850,000 bpd.
Libya's crude production has climbed to roughly 1.4 million bpd, its highest level in more than a decade. Officials are targeting 1.6 million bpd by the end of the year, with a longer-term goal of 2 million bpd, as the country works to restore output last seen before the 2011 fall of Muammar Gaddafi.