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Libya starts prequalification for upstream oil project

27 May 2025

Libya’s Benghazi-based Arabian Gulf Oil Company (Agoco) has started the prequalification process for a project to develop the Bayda field (concession 47), which is part of the Sirte Basin.

The project scope will include supplying and installing upstream production units at the field, and the deadline for the submission of prequalification documents is 2 June, according to documents published by Libya’s state-owned National Oil Company (NOC).

Modular construction

Libya has used the installation of modular early production facilities (EPFs) to increase the production of several of its oil fields in recent years.

Compared to building a larger, bespoke central processing facility, these projects can be awarded relatively quickly and often have fewer delays than other projects in Libya.

In addition, the contract model usually used does not require high upfront fees from the client.

Payments are typically made using a lease model over a fixed period and, after this period, the ownership of the facility is transferred to the client.

The model used, which is similar to the build-own-operate-transfer model, means that no large initial payment is needed from the client and the contractor can be sure of regular payments over the fixed period, as the client generates revenues from producing hydrocarbons and operating the EPF.

Bayda production

In 2020, Agoco announced that it had discovered an oil reservoir in the Bayda field.

The discovery came while drilling exploratory well Z1-47, located 50 kilometres northwest of the Bayda oil field.

Test production from the well started in December 2019 and ended at the beginning of March 2020.

https://image.digitalinsightresearch.in/uploads/NewsArticle/13952627/main3247.jpg
Wil Crisp

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