Libya's National Oil Corporation (NOC) signed a memorandum of understanding on Tuesday with the U.S. energy company Chevron, aimed at conducting a joint study to assess unconventional resources—primarily shale oil and gas—in a number of Libyan sedimentary basins.

NOC Chairman Masoud Suleman stated on his Facebook page: “This agreement represents an important milestone in the development of Libya’s energy sector, as we will work in cooperation with Chevron to assess the promising potential of unconventional oil and gas sources in three of the most important sedimentary basins: the Sirte Basin, the Murzuq Basin, and the Ghadames Basin.”

NOC Strategy

Suleman added that “preliminary estimates indicate the presence of approximately 123 trillion cubic feet of gas, in addition to nearly 18 billion barrels of oil, figures that reflect significant opportunities to bolster national reserves and support the national economy.”

Suleiman emphasized that this step is part of the National Oil Corporation’s strategy to diversify energy sources and maximize the use of unconventional resources.

Memorandum of Understanding Signing Ceremony

The signing ceremony for the memorandum of understanding took place at the National Oil Corporation’s headquarters in Tripoli in the presence of Jeremy Brendt, Chargé d’Affaires at the U.S. Embassy in Libya, his deputy, and a number of members of the Corporation’s board of directors and its affiliated oil companies.

The National Oil Corporation and Chevron had previously signed a memorandum of understanding on March 27 to conduct a comprehensive technical study of the “146 NC” offshore block.

Chevron secured Block S4 in the Sirte Basin with a maximum profit share of 25% after winning the public bidding round, the results of which were announced by the National Oil Corporation on February 11.