E&P

MOL Group has signed a production sharing agreement with its partners, Repsol and Türkiye Petrolleri A. O. (TPAO) for an offshore exploration area in the Mediterranean Sea, after being granted an exploration licence by LIbya's NOC 

The project will contribute to the revitalization of Libya’s oil and gas industry and marks a strategic milestone for Central Eastern Europe’s energy security, according to MOL.

The signing of the production sharing agreement represents a significant step in advancing exploration activities in Libya. MOL Group entered the country earlier this year through a successful bid with its JV partners for an offshore exploration licence in Libya’s first bidding round for 18 years, which attracted more than 40 bids, signalling growing international interest in Libya’s largely untapped hydrocarbon potential. Five blocks were awarded, with MOL (20%) together with Repsol (40% as operator) and TPAO (40%), being awarded the O7 offshore block.

The O7 block covers more than 10,300 km² in water depths exceeding 1,500 meters, located approximately 140 kilometres northwest of Benghazi. Its deepwater setting aligns with the consortium’s extensive offshore experience.

Activities in Block O7 will include the acquisition of 1,500 km 2D and 2,300 km² 3D seismic data and the drilling of one exploration well.

“We are excited that our joint project with Repsol and TPAO has entered a new phase with the signing of a production sharing agreement. This also means a new milestone in the revitalisation of Libya’s oil and gas industry and we are honoured to be part of it. Libya holds strategic importance for Europe and offers an exceptional offshore exploration opportunity in North Africa. We are committed to contributing our expertise to Libya’s economy, while also strengthening the energy security of Central Eastern Europe through a new source.“ said Zsombor Marton, executive vice president of MOL Group Exploration and Production.

The announcement follows the signing of a new strategic partnership between MOL Group and Libya’s National Oil Corporation (NOC) in January 2026 which involves exchanging expertise, deepening technological cooperation, and identifying new business opportunities that strengthen both organisations' international presence and future growth. Areas of potential co-operation included hydrocarbon exploration and production, technological and field development innovations, oilfield services opportunities in Libya, crude supply and trading activities.

MOL is looking to expand its international portfolio to maintain its strategy target of at least 90,000 barrels of oil equivalent/day production level over the next five years.

Libya’s oil production currently stands at around 1.4mn bpd. NOC aims to produce 1.6mn bpd by the end of 2026, rising to 2mn bpd in the medium term, and sees the participation of international companies as crucial to achieving its growth plans. Libya’s NOC has also signed production sharing agreements recently with Spain’s Repsol, in partnership with the Turkish Petroleum Corporation (TPAO); and Eni, in partnership wih QatarEnergy.

Chevron has started drilling a new well in the Nargis natural gas field in the Mediterranean Sea, as part of ongoing efforts to develop the field, discovered in 2022

The project is being developed by Chevron as the main operator, in partnership with Eni, as well as Mubadala Energy and Tharwa Petroleum Company. The Nargis field is located in the prolific East Nile Delta Basin of the Mediterranean Sea, approximately 50 km offshore.

Eng. Karim Badawi, Minister of Petroleum and Mineral Resources, reviewed the launch of drilling activities aboard the drilling vessel Stena Forth, recently arrived in Egypt to begin operations at the field.

The Minister said that the drilling of the new well is part of the Ministry of Petroleum and Mineral Resources' strategy to encourage international energy companies to accelerate the development of untapped gas discoveries, including the Nargis Field, and bring them into the development and production portfolio.

The Egyptian government is encouraging investment and incentivising exploration and production to reverse years of decline and reduce energy imports, a drive which is being given additional impetus by the current situation in the Middle East. These efforts seem to be paying off, with a high level of exploration activity and a number of promising discoveries being made.

The most recent is the discovery by Agiba Petroleum Company, the joint venture between the Egyptian General Petroleum Corporation (EGPC) and Eni, in the Western Desert, representing the company's most significant discovery over the past 15 years.

The Ministry announced that the discovery was achieved through the South Bostan-1X exploratory well, drilled using the EDC-9 rig operated by the Egyptian Drilling Company (EDC). Preliminary estimates indicate reserves of approximately 330 bcf of gas and 10 million bbl of condensates and crude oil, with total estimated recoverable reserves reaching 70 million bbl of oil equivalent.

The significance of the new discovery is further enhanced by its proximity to existing facilities and infrastructure, which will enable its rapid development and swift tie-in to the production network.

The well encountered multiple sandstone and limestone reservoirs, with a net pay thickness of 400 feet, highlighting the discovery's strong economic potential and production significance.

The new discovery reflects the success of the Ministry of Petroleum and Mineral Resources' incentives to encourage partners to intensify exploration activities in areas adjacent to existing fields. This approach has facilitated the identification of new discoveries in close proximity to established infrastructure and production facilities, eliminating the need for significant new infrastructure investments. As a result, development costs are reduced, time to first production is accelerated, and operating efficiencies are enhanced

In early May Eni made a new natural gas discovery in the Nile Delta region, with estimated production rates of around 50 Mmcf/d, following its gas and condensate discovery in the Temsah concession in the Eastern Mediterranean in April, with preliminary estimates of about 2 trillion cubic feet of gas and 130 million barrels of associated condensates.

Also this year, Dragon Oil announced a new oil discovery following the successful drilling of the South El Wasl ‘B.B2’ exploration well in the Gulf of Suez, with initial results indicating production rates above 2,000 bpd of oil. While US Apache, in collaboration with the Egyptian General Petroleum Corporation (EGPC), made a new natural gas discovery in the Western Desert, following the drilling of the SKAL-1X exploratory well in the South Kalabsha area, with initial test results indicating a daily production rates of approximately 26 million cubic feet (mmcf) of natural gas and 2,700 barrels of condensate.

TotalEnergies is expanding its exploration activities in the Mediterranean. (Image source: Adobe Stock)

In a comprehensive strategic move, TotalEnergies is expanding its offshore exploration activities in the Mediterranean region with the siging of exploration agreements with Syria and Egypt

Together with its partners QatarEnergy and ConocoPhillips, TotalEnergies has signed a Memorandum of Understanding (MoU) with the Syrian Petroleum Company (SPC) relating to the exploration of Block 3 offshore Syria in the Mediterranean Sea. Block 3 is situated in the Levantine Basin offshore the Syrian city of Latakia, with water depths ranging between 100m and 1,700m.

The agreement revives a prior partnership with Syria dating back to 1988–2011. In 2011, TotalEnergies was producing 53,000 bopd before the company had to withdraw in order to comply with the EU sanctions. The renewed MoU covers a technical review by the partners of the offshore Block 3 area and establishes a framework for technical and commercial discussions related to exploration activities on this block.

“We are pleased to enter into this new partnership with the Syrian Petroleum Company with which we had a long and fruitful relationship from 1988 to 2011, and we look forward to cooperating with QatarEnergy and ConocoPhillips to assess Syrian offshore exploration opportunities in the Mediterranean Sea,” stated Julien Pouget, senior vice president of Middle East and North Africa exploration & production at TotalEnergies.

This collaboration sets a framework for technical and commercial discussions on future exploration activities, potentially expanding TotalEnergies’ upstream footprint in the Eastern Mediterranean and signalling renewed international interest in Syria’s offshore energy resources.

Egypt agreement

TotalEnergies is collaborating with the Egyptian Natural Gas Holding Company (EGAS) with the signing of an MoU on exploration activities. The MoU covers a large area located in the north-western offshore of Egypt. This MoU establishes a framework for technical cooperation including preliminary exploration and subsurface evaluation activities.

“We are pleased to launch this cooperation with EGAS, which reflects our shared ambition to further strengthen our partnership with the Arab Republic of Egypt. This agreement will support the assessment of Egypt’s deep offshore exploration potential,” said Nicola Mavilla, senior vice president of exploration at TotalEnergies. This partnership marks another step in Egypt’s ongoing efforts to attract international upstream investment and expand offshore exploration activity in the Mediterranean region.

a planned 3D seismic survey and exploration and appraisal program is expected to advance the development of the new resources by the end of 2028. (Image source: Adobe Stock)

Masar Petroleum SAOC, a leading Omani oil and gas exploration and production company, has announced a major discovery in the Hasirah Ridge in Block 7, Sultanate of Oman

The Block 7 concession area spans approximately 2,300sq km in Al Wusta Governorate, central Oman and is operated by Masar Petroleum, which holds a 100% stake. The company started producing from the Hasirah reservoir in 2017.

Masar Petroleum has now successfully drilled a new exploration well south of its existing discoveries, validating the concept of the Hasirah Ridge, a geological trend 5km wide and 30 km long mapped across Block 7 using 2D seismic data. This discovery represents the critical first step toward unlocking the Ridge’s prospective resource base of 100 to 380 million barrels.

A 3D seismic survey and exploration and appraisal program is now going to be conducted, to advance the development of the new resources by the end of 2028.

First production from this field is expected to be on stream during the last quarter of the year. Masar Petroleum plans to rapidly advance appraisal and development opportunities across Block 7, with a view to accelerated growth.

“Masar is a proud Omani E&P company that has delivered significant value through a continuous and focused effort on unlocking our potential,” said Abdulsattar AlMurshidi, chief executive officer of Masar Petroleum.