This article discusses Libya's National Oil Corporation's (NOC) innovative initiatives and strategic plans in the context of the COP28 climate summit, focusing on sustainability, production increase, and licensing rounds
1- COP28 Bengdara launches ‘Think Tomorrow’ initiative for Future Green Zone Sustainability in Libya
At the ongoing COP28 climate summit in Dubai, Chairman Farhat Bengdara of Libya’s National Oil Corporation (NOC) announced the launch of a new initiative called “Think Tomorrow” aimed at promoting green and sustainable practices in Libya. The initiative is designed to address environmental challenges the country is facing, such as gas flaring and oil waste suffices, and promote renewable energy sources development.
Gas flaring is a major environmental concern in Libya, as it releases large amounts of greenhouse gases into the atmosphere. According to NOC estimates, gas flaring in Libya accounts for around 15% of the country’s total greenhouse gas emissions. The “Think Tomorrow” initiative aims to eliminate gas flaring by 2030 through the implementation of new technologies and infrastructure upgrades.
Another major environmental issue in Libya today is the presence of oil waste suffices, which are a significant source of pollution and pose a health risk to local communities. The “Think Tomorrow” initiative aims to address this issue by implementing a comprehensive waste management plan that includes the construction of new treatment facilities and the adoption of more sustainable practices in oil production.
In addition to these initiatives, “Think Tomorrow” also focuses on promoting renewable energy sources in Libya’s oil fields. The NOC plans to generate clean energy through the use of solar panels and wind turbines, which will be used to power oil production facilities. This will not only reduce greenhouse gas emissions, but also lower operating costs for the NOC by reducing its reliance on fossil fuels.
Finally, “Think Tomorrow” also includes a project aimed at increasing green spaces in Libya’s oil territories by planting one million trees. This initiative will not only help mitigate the effects of climate change, but also provide new opportunities for local communities to engage with nature and promote sustainable land use practices.
Overall, the “Think Tomorrow” initiative represents a significant step forward for Libya’s efforts to promote green and sustainable practices in its oil industry. By addressing environmental challenges such as gas flaring and oil waste suffices, promoting renewable energy sources, and increasing green spaces.
2- Libya’s NOC announces plans to increase oil Production by 100,000 barrels per day in 2024″
In an interview with The National, Farhat Bengdara, the Chairman of Libya’s National Oil Corporation (NOC), revealed plans to increase oil production by 100,000 barrels per day (bpd) in 2024. Bengdara explained that this move would provide the company with an opportunity to replace reduced crude supplies from other parts of the world, due to volatility in the oil market.
The NOC currently produces around 1.2 million bpd, and Bengdara aims to boost production to 2 million bpd within the next three to five years. However, he cautioned that the NOC is not immune from political and geopolitical circumstances that are happening today, everywhere.
Bengdara emphasised the need for stability, increased production, and effective operation management within Libya. These efforts will help the NOC navigate through any political or geopolitical challenges that may arise in the future.
Libya, the seventh-largest crude oil producer in the Organization of the Petroleum Exporting Countries (OPEC), has been working to increase production after years of conflict and political instability. Crude oil and natural gas export revenue play a significant role in Libya’s economy, with oil revenue accounting for an estimated 98% of the country’s total government revenue in 2021, according to the central bank.
In an effort to boost production, Libya’s government has committed $12 billion to the cause, with an additional $5 billion expected from the Libyan Investment Authority. Farhat Bengdara, the Chairman of Libya’s National Oil Corporation (NOC), has stated that the NOC is aiming for an 83% reduction in gas flaring by 2030 as part of efforts to reduce carbon emissions.
The NOC is also working on projects with TotalEnergies and Eni to swap gas for renewables. “We don’t use the gas for our electricity,” Bengdara said. “We export gas to Europe and we use renewables for our own consumption because we are more competitive in cost, when it comes to producing renewables, than Europe is.”
On Saturday, 50 oil and gas companies, including the NOC, signed the Oil and Gas Decarbonisation Charter, committing to achieve net-zero emissions by 2050 or earlier. The charter also aims for near-zero upstream methane emissions and zero routine flaring by 2030. Bengdara expressed optimism about the charter, stating that he believes it is a doable thing.
Libya’s National Oil Corporation’s (NOC) aspiring decision to increase oil production by 100,000 barrels per day (bpd) in 2024 comes against the backdrop of falling oil prices, despite two major geopolitical conflicts and record crude imports from China, the world’s second-largest economy. Brent, the benchmark for two thirds of the world’s oil, is currently trading below $80 a barrel after briefly touching $98 in September.
Last week, OPEC members extended their voluntary oil output reductions of a combined 2.2 million bpd until the end of the first quarter of next year amid concerns over the fuel demand outlook. Saudi Arabia, the world’s largest oil exporter, has announced that it will keep its voluntary output cut of one million bpd until the end of March. In an interview with Bloomberg on Monday, Saudi Arabia’s Energy Minister H.E. Prince Abdulaziz bin Salman said he expected Opec to bring about the crude oil production cuts. “I honestly believe that will continue to happen [and the] 2 million will overcome even the huge inventory build that usually happens in the first quarter,” he said.
The decision by NOC to increase production comes at a time when major geopolitical conflicts have disrupted global supply chains and led to higher prices for crude oil. The ongoing war between Russia and Ukraine has resulted in sanctions against Russia, which is a major oil producer, leading to supply disruptions and price volatility. Additionally, tensions between Iran and Saudi Arabia have also contributed to uncertainty in the oil market.
3- Libya’s NOC announces Late-2024 Licensing Round at COP28 to boost Oil production and reduce carbon emissions
Libya’s National Oil Corporation (NOC) is currently in the early stages of identifying blocks to offer in its upcoming licensing round, scheduled for late-2024.
This will be the first licensing round in Libya since 2007, following a period of instability and conflict that disrupted oil production and investment. Between 2004-2007, four rounds were held, generating significant interest from international oil companies (IOCs) due to Libya’s promising subsurface potential. However, the challenging EPSA IV fiscal terms deterred many IOCs from participating.
Chairman Farhat Bengdara has acknowledged that the terms will be made more attractive for this upcoming round. This move is likely aimed at encouraging greater participation from IOCs and boosting investment in Libya’s oil sector.
Many IOCs with existing upstream operations in Libya have expressed interest in participating in the upcoming round, including Eni, TotalEnergies, ConocoPhillips, Suncor, OMV, Wintershall Dea, and Repsol. BP and Equinor have also announced plans to resume their operations in Libya.
The success of this licensing round will be closely watched as it could signal a renewed period of investment and growth for Libya’s oil sector.
The upcoming licensing round in Libya is part of the country’s efforts to increase oil production and reduce carbon emissions. Libya, as a member of OPEC) In a statement at COP28, NOC Chairman Farhat Bengdara explained that the licensing round will prioritise blocks with low carbon intensity and potential for carbon capture, utilisation, and storage (CCUS) projects. This reflects Libya’s commitment to reducing its carbon footprint and aligning with global efforts to combat climate change. The NOC has also announced plans to invest in renewable energy projects, with a target of generating 10% of its electricity from renewable sources by 2025.
This will help Libya reduce its reliance on fossil fuels and lower its greenhouse gas emissions. The upcoming licensing round is expected to attract significant interest from IOCs, particularly those with expertise in low carbon intensity projects and CCUS technology. This could lead to new discoveries and increased production in Libya, while also contributing to the country’s efforts to reduce its carbon footprint. Overall, the NOC’s strategy of balancing oil production and environmental sustainability is a promising development for Libya’s economy and its international reputation as a responsible energy producer.
4- Libya’s NOC at COP28: Balancing Oil production and Environmental Sustainability through Clean Energy investment and innovation
At COP28 in Dubai, Libya’s National Oil Corporation (NOC), led by Chairman Farhat Bengdara, unveiled a transformative vision for Libya’s energy future. The state-owned oil firm, which ranks as the 16th largest global oil producer and the second-largest in Africa, is committed to innovation, environmental responsibility, and sustainable growth. Bengdara emphasised that NOC’s vision goes beyond oil and gas, prioritising positive change for Libya, the industry, and the global community.
NOC is taking a strategic move toward more sustainable practices, with a focus on reducing gas flaring to near zero by 2030. Collaborations with nine oil companies aim to achieve an 83% reduction in gas flaring. To harness Libya’s potential in solar and wind power, NOC is actively integrating renewables into its energy mix. The company aims to supply oil fields with renewable electricity, marking a significant step towards more sustainable oil operations. NOC also plans to plant one million trees between 2023 and 2025 as part of its environmental commitment.
Bengdara stressed the importance of a balanced approach to Libya’s energy transition, gradually decreasing traditional oil and gas resources while increasing renewables within the domestic energy mix. NOC’s collaboration with international energy companies aims to position Libya as a major producer and exporter of renewable energy due to its strategic position close to Europe.
NOC Chairman Farhat Bengdara will speak at the upcoming Libya Energy & Economic Summit in Tripoli on January 13–14, 2024, under the theme “A New Libya: Built on Energy.” The event will explore opportunities for investment in Libya’s energy sector following the country’s recent political stability.
During his presentation at COP28, Bengdara also discussed NOC’s Energy Tech Initiative, which aims to promote innovation and technology in the energy sector. As part of this initiative, NOC is launching a hackathon in January 2024 to select a sustainability partner among a pool of start-up companies. The event will focus on developing innovative solutions for environmental challenges facing Libya’s energy sector.
Bengdara highlighted the importance of collaboration and partnerships in achieving NOC’s goals. He called for international support and investment in Libya’s energy sector, particularly in clean energy projects. “We are navigating toward a resilient and prosperous energy future through collaboration, innovation, and a dedication to responsible practices,” he said.
NOC’s commitment to environmental sustainability is part of a broader trend in the oil and gas industry towards decarbonisation and clean energy investment. Many major oil companies have also set ambitious targets for reducing greenhouse gas emissions and transitioning to renewable energy sources.
In response, Bengdara emphasised the need for a balanced approach to Libya’s energy transition, taking into account the country’s economic and social needs. “We must balance our environmental commitments with our economic realities.
Overall, NOC’s presentation at COP28 highlighted the company’s commitment to environmental sustainability, innovation, and collaboration in achieving a more sustainable future for Libya’s energy sector. As the industry continues to evolve in response to global climate challenges, it will be important for companies like NOC to lead the way in developing innovative solutions that balance environmental responsibility with economic realities.
