Oil India Limited has reported a major overseas oil and gas discovery in Libya, a development that could strengthen the company’s international exploration portfolio amid volatility in global energy markets.

The state-owned firm informed stock exchanges that the discovery was made in the Area 95/96 block in Libya, located in the Ghadames Basin in the southwestern region of the country. The area is considered highly prospective for hydrocarbons. 

Oil India holds a 25 per cent stake in the block, which covers an area of approximately 6,630 square kilometres, as part of an Indian consortium that also includes Indian Oil Corporation Limited (IOCL).

According to the company, eight exploratory wells are planned in the block, of which five have already been drilled.

The drilling of the sixth well (A1-96/02) has now led to the discovery of fresh oil and gas. Libya’s National Oil Corporation (NOC) has formally recognised the well as the fifth discovery in the block, highlighting the strong hydrocarbon potential of the region.

PREVIOUS OIL, GAS DISCOVERIES

Between 2012 and 2014, four wells yielded oil and gas.

The company said the discovery will now undergo detailed evaluation to assess its commercial viability and reservoir potential. If found viable, it will be moved to the development stage.

Oil India said the find could enhance the value of its overseas assets and potentially open new revenue streams in the future, while further strengthening its global exploration footprint.

WHY THE DISCOVERY MATTERS

The war in the Gulf has disrupted flows through the Strait of Hormuz, a key global oil chokepoint that handles nearly a fifth of the world’s supply. Shipping has been hit, negotiations have stalled, and markets remain volatile, with oil prices climbing as supply tightens.

The conflict has already led to one of the largest supply shocks in modern history, with millions of barrels per day effectively removed from the market and global energy security under strain.

Against this backdrop, Libya’s reserves are gaining renewed strategic importance.

The discovery also strengthens India’s push to secure energy assets abroad at a time when geopolitical risks are directly affecting supply chains.

Source: India Today 

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