North Africa to benefit from European oil demand
Global energy giants are increasingly turning to North Africa to quench their thirst for new sources of oil. Long viewed as too politically risky to safely invest, the region has been attracting big oil companies since the Russian invasion of Ukraine disrupted energy markets.
This week, Halliburton and Honeywell worked out $1.4 billion worth of deals to develop oil projects in Libya, the Wall Street Journal reports. At the end of 2021, Libya held the largest proven oil reserves in Africa, according to the US Energy Information Administration, accounting for 39% of the reserves on the continent. It is Africa’s third-largest producer of petroleum products, following Nigeria and Algeria.
Chevron and the Italian energy giant Eni have both sought deals with Algeria’s state-owned energy company since the invasion began last year. Chevron has also turned toEgypt, which is eager to plug holes in its economy with energy revenues, OilPrice reports.