Libya’s Zallaf Oil and Gas Company, North Africa’s oil giant, has shipped its first export from the Chadar oil field, delivering over 600,000 barrels of premium crude. The milestone underscores Libya’s efforts to revive its oil sector and strengthen Africa’s position in the global energy market.
The Chadar field, located in the prolific Sirte Basin, was discovered in 1968 by Mobil but remained undeveloped for decades due to political instability and underinvestment. To unlock its potential, the National Oil Corporation (NOC) established Zallaf Oil and Gas in 2017, specifically tasked with developing long-dormant fields. Production at Chadar began in January 2025, initially yielding 1,500 barrels of crude per day and 7.5 million cubic feet of associated gas from five wells. Since then, output has steadily increased, culminating in the recent shipment of 600,000 barrels of high-quality Sidra crude.
In March 2023, Zallaf signed a contract with U.S.-based Honeywell for engineering work on the planned South Refinery project, initially estimated to cost $500–600 million. The refinery is designed to process 30,000 barrels of crude per day, producing conventional petroleum products.
Libya’s oil production capabilities have also been enhanced by new discoveries in the Sirte Basin. The newly drilled H1-NC4 well is estimated to produce approximately 4,675 barrels of crude per day and around 2 million cubic feet of natural gas. A separate discovery in the Sirte Basin by the Libyan arm of Austria’s OMV is producing over 4,200 barrels per day and 2.6 million cubic feet of gas. These developments indicate a steady recovery in Libya’s overall output, with total production reaching 310,000 barrels per day by the end of October 2025.
The resurgence of Libya’s oil industry has coincided with the return of major international oil firms, including BP, Shell, Eni, TotalEnergies, ExxonMobil, and Chevron. These multinationals have resumed operations or expressed interest in new projects following the NOC’s first oil and gas tender in 18 years. Austria’s OMV also restarted operations in late 2024, signalling growing investor confidence after years of conflict-driven disruptions.
Historically, Libya produced over 1.6 million barrels per day before the 2011 civil war, ranking it among Africa’s top oil producers. However, output fluctuated due to insecurity and damaged infrastructure, making the current recovery all the more significant.
Libya’s progress reflects a broader trend across Africa, where oil producers from Namibia to Nigeria are ramping up exploration and investment to secure energy supplies and strengthen fiscal revenue. These new discoveries and increased production could play a strategic role in meeting global energy demand over the medium term.
China leads Chad’s US$4.5 billion oil revival with major refinery upgrade
