With major oil companies like Chevron (NYSE:CVX), Conoco Phillips (NYSE:COP) Exxon Mobil (NYSE:XOM) and Royal Dutch Shell (NYSE:RDS-A), among others, unsuccessfully working the offshore areas of Libya, the country is counting on a successful exploration from BP to help them return to an important player in the oil sector.
The Gulf of Sidra, which BP will be drilling in, hasn't been drilled before, and BP will be drilling the first in the area in hopes of tapping into Libyan oil and gas reserves.
Libya has a goal of reaching levels from the 1970s, where they peaked a 3 million barrels of oil a day being produced by 2015. By 2020 they want to increase daily production to 3.5 million barrels, although some close to the situation say the possibility of those goals being met is slim.
National Oil Corp., the Libyan state state energy company, said more realistic would be attaining about 2.5 million barrels a day by 2015.
In a deal with Libyan leader Muammar Gaddafi, BP will drill five deepwater offshore wells in the Gulf of Sidra, along with an onshore concession in Ghademe Basin.
The bad news for BP and Libya is Royal Dutch Shell has already drilled two wells in the Gulf of Sidra and came up empty.
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