The discovery has been made in the Area 95/96 block in Libya’s Ghadames Basin, a region widely known for its rich hydrocarbon reserves, both companies said, News.Az reports, citing foreign media.
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The block, spread across about 6,600 square kilometres in south-western Libya, is operated by Algeria-based Sonatrach International Petroleum Exploration and Production Corporation, along with a consortium that includes the two Indian public sector companies.
Indian Oil and Oil India each hold a 25 per cent participating interest in the project.
According to company statements, the consortium had planned a total of eight exploratory wells in the block. Five wells have already been drilled, and the latest discovery emerged during drilling of the sixth exploratory well after exploration activities resumed in the region.
Indian Oil Corporation said the renewed drilling efforts led to the identification of oil and gas reserves, marking another step forward in the consortium’s exploration programme. Following initial testing, Libya’s National Oil Corporation has formally recognised the find as a new hydrocarbon discovery within the block.
The well was drilled to a depth of around 8,440 feet, and during testing it produced about 13 million cubic feet of natural gas per day along with 327 barrels of condensate per day from the Awynat Wanin and Awyn Kaza formations, according to details shared by the Ministry of Petroleum and Natural Gas.
The ministry said the discovery reflects the expanding global footprint of Indian energy companies and underlined the importance of strategic international partnerships in strengthening India’s energy security through overseas assets.
IOC has said that detailed appraisal and evaluation work will now be undertaken to better understand reservoir characteristics, estimate the size of recoverable resources, and assess the commercial potential of the discovery. Only after this stage will decisions be taken on possible development plans.
The company also described the development as an important milestone in its overseas upstream portfolio, saying it aligns with its broader strategy of expanding international exploration and production assets while targeting selective high-potential opportunities abroad.
The discovery comes at a sensitive moment for global energy markets, which have been unsettled by geopolitical tensions in West Asia. Concerns over possible disruptions through the Strait of Hormuz — a key global oil transit route handling a significant share of seaborne crude — have recently pushed oil prices higher.
Brent crude surged to around $110 per barrel in trading sessions on Tuesday, reflecting renewed fears of supply constraints as diplomatic negotiations involving Iran and the United States remain uncertain.
