TotalEnergies

Total and ConocoPhillips signed an agreement with Libya to double production on the Waha basin. They will invest $20bn over 25 years. Total and Conoco each own 20.42% of the field with the Libyan National Oil Company owning the rest.  

The objective is to increase production from around 350,000 barrels per day currently to a potential 850,000 barrels per day at the basin level. Libya currently produces around 1.5 million barrels per day and holds approximately 48 billion barrels of proven oil reserves, the largest in Africa. Production costs are structurally low, with onshore, conventional barrels. At plateau, the project could generate around €2.3 billion of EBITDA per year for TotalEnergies, for an estimated capex of approximately €9 billion, with a gradual ramp-up towards 2030. In parallel, discussions are ongoing with Chevron, and a new oil and gas exploration licensing round will be launched next month, confirming the reopening of Libya’s upstream sector. Overall, we expect a positive market reaction in the short and medium term.