Libya’s National Oil Corporation (NOC) has announced the start of oil and gas production at the Chadar field, operated by its subsidiary Zallaf for Oil and Gas.

The field is now producing more than 7.5 million cubic feet of associated gas per day along with 1,500bpd of crude oil.

This milestone was achieved on the first day of production, contributing to Libya’s national output, which stood at just over 1.4 million barrels per day (mbbl/d) at the end of 2024.

The Chadar field is situated in the Sirte Basin within the NC-126 oil concession, south-east of Ajdabiya in eastern Libya.

In a strategic move to enhance its downstream capabilities, Zallaf has recently contracted Honeywell, a US-based company, for engineering work on the upcoming South Refinery project.

The refinery, with an estimated cost of between $500m (Ld2.46bn) and $600m, is designed to process approximately 30,000bpd of crude oil into conventional petroleum products.

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In October 2024, Libya witnessed the resumption of oil exploration by Eni and BP, with drilling operations in the Ghadames Basin, as confirmed by NOC.

Onshore drilling resumed after being halted in 2014 due to political instability following the overthrow in 2011 of Muammar Gaddafi, the country’s late ruler.

Also last year, NOC declared force majeure at the Sharara oilfield, halting production due to local protests. As one of Libya’s largest oilfields, Sharara has a production capacity of up to 300,000bpd.

The shutdown also disrupted crude oil supplies to the Zawiya terminal on the Mediterranean coast.