TotalEnergies is upping its investments in Libya, with commitments to spend billions of dollars on conventional hydrocarbon and renewables projects.
The French operator plans to boost its own oil production thereby contributing to the troubled North African nation’s goal of boosting crude output to 2 million barrels per day and supplying volumes to global markets.
TotalEnergies signed various agreements for the sustainable development of the country’s natural resources with the host government during the Libya Energy & Economy Summit, the first economic conference to take place in a decade in the North African nation.
The French operator agreed to develop production capacity of the Waha concessions, notably the 100,000 barrels per day North Gialo project, representing a $2 billion investment.
TotalEnergies will also invest in gas gathering projects to reduce flaring and supply power plants in the region and utilise solar energy to power Waha’s industrial facilities.
Plans include investments in projects intended to reduce gas flaring at Libyan oilfields that will free up gas to be used as feedstock for power generation. Also on the cards are solar projects that will supply power to the domestic market.
Libya's Council of Ministers of the Government of National Unity also approved the joint acquisition by TotalEnergies and US major ConocoPhillips of Hess’ 8.16% interest in the Waha concessions, which will increase TotalEnergies’ interest in these concessions from 16.33% to 20.41%.
Also signed was the memorandum of understanding between TotalEnergies and the General Electricity Company of Libya for the development of solar photovoltaic projects with a total capacity of 500 megawatts, designed to supply electricity to the national grid.
“These agreements reflect TotalEnergies’ willingness to strengthen its investments in Libya’s energy sector,” said TotalEnergies chief executive Patrick Pouyanne.
“We aim to assist the country in building a more sustainable future through a better use of the country’s natural resources, including solar energy, which will directly improve the accessibility of cleaner, more reliable and more affordable electricity to the Libyan people.
“We are thus leveraging our leadership position in the region, where the lowest-cost hydrocarbons are produced, to pursue our development in renewable electricity.
"These agreements further illustrate the sustainable development model of TotalEnergies, a global multi-energy company that supports producing countries in their energy transition,” he added.
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