E&P

Arcius Energy takes FID for Egypt's Harmattan gas field

There have been several promising recent discoveries in Egypt. (Image source: Adobe Stock)

Arcius Energy, the bp and XRG joint venture focused on Egypt gas development, has announced the Final Investment Decision (FID) to develop the Harmattan gas field in the El Burg Offshore concession area, one of the joint venture’s first projects in Egypt

The investment, estimated at around US$500mn, aims to increase natural gas production to meet domestic market needs and follows hard on the heels of Arcius’s acquisition of the El Burg Offshore concession area in February 2026, which lies approximately 2.5 km north of Ras El-Barr in Damietta. Arcius plans to develop the field through drilling of up to three wells and the installation of a fixed offshore platform, connected by a 50-km pipeline to onshore processing facilities located near Port Said. Expected start-up of production is in 2028. The project aims to produce approximately 150mn cubic feet of gas and 3,300 barrels of condensates daily.

Pharaonic Petroleum Company (PhPC), acting on behalf of El Burg Offshore Petroleum Company, has awarded the Engineering, Procurement, Construction, and Installation (EPCI) contract to ENPPI, with Petroleum Marine Services and Petrojet as subcontractors.

Naser Al Yafei, chief executive officer of Arcius, commented, “The Final Investment Decision to develop the Harmattan field marks an important milestone in advancing one of our first projects in Egypt toward production. It reflects our confidence in the potential of Egypt’s energy sector and our commitment to close cooperation with the Egyptian government, EGAS, and our execution partners to strengthen Egypt’s natural gas supply, support energy security, and reinforce Egypt’s position as a regional energy hub in the Eastern Mediterranean.”

Arcius Energy was established in December 2024 as a regional gas platform focused initially on the development of gas assets in Egypt and the wider Eastern Mediterranean, with bp holding 51% and XRG, ADNOC’s international investment arm, holding 49%. It holds 10% of Shorouk which contains the producing Zohr field; 100% of North Damietta which contains the producing Atoll and Qattameya fields; 100% of El Burg Offshore which contains the Harmattan field; 100% of the North El Tabya exploration concession, and 50% of the Bellatrix–Seti East and North El Fayrouz exploration concessions.

The agreement, signed at the Egypt Energy Show held in Cairo from 30 March-1 April, comes as Egypt is pushing to boost its oil and gas production in a bid to reverse recent declines and reduce energy imports. Recent discoveries are helping to achieve this aim, and there are plans to drill 480 new exploration wells over the next five years at a cost of around US$5.7bn.

On the sidelines of the Egypt Energy Show, majors such as bp, Chevron and Eni confirmed their commitment to make further investments in the market, acknowledging the efforts made by the Egyptian government to improve the investment environment. bp, which was recently awarded the licence for the North-east Alamein Offshore concession, signed an agreement with South Valley Egyptian Petroleum Holding Company (GANOPE) to carry out exploration in the Red Sea.

“We are excited about bringing the drillship, Valaris DS-12, back to Egypt to embark on a multi-well campaign to produce, develop and explore for more gas resources,” said William Lin, executive vice president for Gas and Low Carbon Energy in a LinkedIn post.

Also signed at the Egypt Energy Show was an MoU between slb and Ganope to design and deploy cost-effective geophysical solutions that derisk exploration and unlock new resource potential in the Red Sea.

Eni makes new discoveries in Libya

The wells are located around 85 km off the coast. (Image source: Adobe Stock)

Eni has made two new gas discoveries in Libya, jointly estimated as containing more than 1 Tcf of gas in place, as a result of its recent exploration campaign

Two adjacent geological structures, Bahr Essalam South 2 (BESS 2) and Bahr Essalam South 3 (BESS 3), were successfully drilled by the B2-16/4 and C1-16/4 wells, located approximately 85 km off the coast in about 650 feet of water, and 16 km south of the Bahr Essalam gas field.

Gas-bearing intervals were encountered in both wells within the Metlaoui Formation, the main productive reservoir of the area. The acquired data indicate the presence of a high quality reservoir, with productive capacity confirmed by the well test already carried out on the first well.

Initial estimates indicate that the BESS 2 and BESS 3 structures jointly contain more than 1 Tcf of gas in place. Their proximity to the Bahr Essalam field - the largest offshore field in the country, in operation since 2005 - will enable rapid development through tie-back to existing offshore facilities. The gas produced will be supplied to the Libyan domestic market and for export to Italy.

Eni has been present in Libya since 1959 and is the country’s leading international operator, with an equity production of approximately 162,000 barrels of oil equivalent per day in 2025. It is currently executing three development projects, two of which will start up in 2026.

Further discoveries by Eni could be in the pipeline, as in February, Eni was awarded the offshore exploration License O1 in the Libyan NOC’s competitive 2025 open licensing round. The concession has been granted to a consortium led by Eni in partnership with QatarEnergy, marking a significant step forward in strengthening Eni’s upstream position in the country.

Covering approximately 29.000 sq km, the block lies in the offshore extension of the prolific Sirte Oil & Gas Province and offers notable exploration potential. The block also features various hydrocarbon indications, including stranded oil and gas discoveries.

Under the terms of the agreement, Eni will operate the concession, with the consortium holding a 100% stake during the exploration and development phases. The partners plan to conduct 2D/3D seismic acquisition and drilling activities over the first five-year exploration period.

Gas from Libya has the potential to make a significant contribution to European energy security. The gas produced at the Wafa and Bahr Essalam fields is transported through the Green Stream gas pipeline to Italy. Through the offshore Structures A&E project, Eni’s largest gas project in Libya, scheduled for launch this year, Eni plans to increase its supplies to the domestic market as well as to Europe.

TotalEnergies restarts production at Libya's Mabruk oilfield

Mabruk oilfield onshore Libya, located in concession C17, around 130 km south of Sirte. (Image source: TotalEnergies)

TotalEnergies has restarted production at the Mabruk oilfield onshore Libya, located in concession C17, around 130 km south of Sirte

Production from the field stopped in 2015.

The construction of a new production unit with a capacity of 25,000 barrels per day was launched in May 2024. Start-up of the new facility occurred on 28 February 2026, less than two years after the project was launched.

“This restart illustrates our long-term commitment in Libya, as we celebrate TotalEnergies’ 70th anniversary in the country this year,” said Julien Pouget, Middle East and North Africa director for TotalEnergies’ Exploration & Production business. “This project, which follows TotalEnergies’ recent announcements regarding the extension of the Waha concessions, brings low-cost, low-emissions oil production in line with the company’s strategy, and contributes to our objective of 3% annual production growth per year until 2030.”

TotalEnergies holds an interest of 37.5% at Mabruk.

The restart follows TotalEnergies’ signing of an agreement extending the Libya onshore Waha Concessions, of which it holds 20.42%, up to 2050, paving the way for further investments and strengthening TotalEnergies’ presence in the country.

This agreement sets new fiscal terms allowing to increase the production of these concessions, currently producing around 370,000 barrels of oil equivalent per day (boe/d). It clears the way for a new phase of investments, including the development of the North Gialo field, which is expected to unlock an additional 100,000 boe/d of production.

The Waha concessions are held by NOC (59.16%), TotalEnergies (20.42%) and ConocoPhillips (20.42%) and are operated by Waha Oil Company (WOC), a company 100% owned by NOC.

TotalEnergies has a longstanding presence in Libya, with production averaging 113,000 barrels of oil equivalent per day in 2025, from the offshore Al Jurf field (TotalEnergies 37.5%), the onshore areas of El Sharara (TotalEnergies 15% in former Block NC 115 and 12% in former Block NC 186), Mabruk, and the Waha concessions.

PETRONAS signs Oman exploration agreement

The agreement relates to exploration in Oman's offshore Block 18. (Image source: Adobe Stock)

PC Oman Ventures Ltd (PCOVL), a subsidiary of PETRONAS, has signed a Concession Agreement with the Government of the Sultanate of Oman and OQ Exploration and Production Batinah Offshore LLC (OQEP) for the exploration of oil and gas in Block 18

Block 18 is a large offshore exploration area located in Northeast Oman, spanning more than 21,000 sq km and offering significant frontier exploration potential across diverse geological settings, from shallow to ultra-deep water. Under the concession agreement, PCOVL will become operator of Block 18 in partnership with OQEP.

PCOVL has been active in the Sultanate of Oman since 2018 and currently holds a participating interest in Block 61. This collaboration builds on the Memorandum of Understanding (MoU) signed between PETRONAS and OQEP in October 2025, strengthening the strategic partnership between both companies and reinforcing PETRONAS’ long-term presence in the Sultanate of Oman.

The partnership supports PETRONAS’ aspiration to enhance its competitive upstream portfolio by aligning its offshore exploration capability with OQEP’s regional expertise, laying the foundation for a mutually beneficial venture.

"Building on our technical strengths and successes, PETRONAS continues to expand its exploration activities into new frontiers. Through our innovative exploration approaches and OQEP’s basin expertise, we aim to jointly unlock the potential of Block 18, contributing to Oman’s long-term energy security. The addition of Block 18 aligns with our commitment to disciplined portfolio expansion, providing strategic optionality across our international portfolio," said Mohd Redhani Abdul Rahman, vice president of International Assets, PETRONAS.

Majors move into Libya as winning bids announced

There is strong international interest in Libya's exploration potential. (Image source: Adobe Stock)

Libya’s NOC has announced the winners of the latest oil exploration bidding round, launched in February 2025, which offered 20 blocks for investment, both onshore and offshore

They include the USA’s Chevron; a consortium of Eni and QatarEnergy; a consortium of Repsol and state-owned Türkiye Petrolleri A. O. (TPAO), a consortium of Hungary’s MOL, Repsol and TPAO; and Nigeria’s Aiteo.

The licensing round was Libya’s first for eighteen years and attracted more than 40 bids, signalling growing international interest in Libya’s largely untapped hydrocarbon potential. Only five blocks out of the 20 offered were awarded.

Chairman of NOC Engineer Masoud Suleiman highlighted that the success of this round, conducted with the highest standards of quality and transparency, marks a significant turning point in the development of the Libyan oil sector. He noted that it will double Libya’s crude oil production, leading to an economic revival that aims to steer the country toward stability and prosperity, while also safeguarding Libya’s crude oil reserves for future generations.

He stressed that the success of this round also signified the restoration of the world’s confidence in Libya, which will in turn have a positive impact on the Libyan economy.

Chevron, through its subsidiary Chevron Business Development EMEA Ltd won Contract Area 106 located in the Sirte Basin, marking its entry into Libya. In January, Chevron separately signed an MoU with NOC in Tripoli to evaluate the development and exploration potential onshore Libya.

"Chevron is excited to enter Libya with the award of onshore Contract Area 106, which underscores our focus on North Africa and the Eastern Mediterranean region, and is a good fit in our exploration strategy to grow our portfolio with high-quality acreage and high impact prospects," said Kevin McLachlan, vice president of Exploration at Chevron.

"Libya has significant proven oil reserves and a long history of producing its resources. Chevron is confident that its proven track record in developing oil and gas projects and its technical expertise gives it the ability to support Libya to further develop its resources."

A consortium led by Eni (60%) in partnership with QatarEnergy (40%) has been awarded the offshore exploration License O1, which covers approximately 29.000 sq km in the offshore extension of the prolific Sirte Basin. It offers notable exploration potential, including wide areas without 3D seismic coverage that could host additional hydrocarbon accumulations. The block also features various hydrocarbon indications, including stranded oil and gas discoveries.

Eni sees the award as “a significant step forward in strengthening Eni’s upstream position in the country”. Eni has been active in Libya since 1959, with equity hydrocarbon production of approximately 162,000 barrels of oil equivalent per day in 2025.

For QatarEnergy, the licence marks its entry into Libya’s upstream sector.

His Excellency Saad Sherida Al-Kaabi, the Minister of State for Energy Affairs, the president and CEO of QatarEnergy, said, “We are pleased to be awarded this exploration block and enthusiastic about the prospects of Libya’s offshore upstream sector and about expanding our upstream footprint in North Africa.”

A consortium of Repsol (operator with 40% share), state-owned Türkiye Petrolleri A. O. (TPAO) with a 40% share and Hungary’s MOL Group (20%) won the 07 offshore block which covers more than 10,300 sq.km in water depths exceeding 1,500m, located approximately 140 km northwest of Benghazi. Its deepwater setting aligns with the consortium’s extensive offshore experience, according to a statement from MOL.

The deal sees the entry of MOL into Libya, and follows the signing of a strategic partnership between MOL and Libya’s NOC. That agreement outlines plans for joint work across several key areas, including hydrocarbon exploration and production, technological and field development innovations, as well as crude supply, trading, and oilfield services opportunities in Libya.

Nigeria’s Aiteo won the M1 block in the Murzuq Basin, while Repsol and TPAO also won the onshore C3 block in the northeastern Sirte Basin.

Libya’s oil production currently stands at around 1.3mn 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.

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