Libya finds 195 million barrels of oil in new field

Amidst escalating tensions in the Middle East and the ongoing war in Ukraine, which have pushed oil prices above $90 per barrel, Libya has announced a significant discovery beneath its desert sands. The National Oil Corporation (NOC) declared a new oil field, named Essar, commercially viable, boasting estimated recoverable reserves of 195 million barrels.

The discovery was made by Austrian energy firm OMV through exploration well B1-106/4 in the Sirte Basin. OMV's development plan has been approved, with production estimated at around 5,000 barrels of crude oil per day. The oil, with a gravity of 42 degrees API, is considered relatively light.

Zueitina Oil Operations will manage the field's development. The Essar field's proximity to existing production facilities and infrastructure is expected to expedite the process, allowing oil to flow into the production network more quickly. This discovery is the result of OMV's renewed exploration efforts in Libya, which resumed in October 2024 after a 13-year hiatus following the 2011 political upheaval.

At current Brent crude prices of approximately $90.79 per barrel, a daily production of 5,000 barrels could generate roughly $453,950 in gross sales daily. This translates to an estimated annual gross sales value of over $165 million, offering a substantial economic boost to Libya.

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The announcement of commercial viability was made by NOC on Thursday, July 16, 2026, and reported by Libya Herald on Friday, July 17, 2026.