Libya’s state-run National Oil Corporation (NOC) and the US’ Hess Corporation have discovered gas deposits in the offshore Sirte basin.

Hess says the well produced 27 million cubic feet a day of gas and 533 barrels a day of condensate.

The US oil major first discovered hydrocarbons following drilling at the well in 2008.

Hess recently re-entered the well and discovered fresh quantities of gas.

It is located in the Arous al-Bahar prospect in Area 54. It is 56 kilometres offshore in the Sirte Basin.

The US firm says it will drill a second appraisal well, seven miles northwest of the discovery area, after completing the first well.

Hess holds a 100 percent interest in Area 54, which it operates under an exploration and production-sharing agreement with NOC.

Hess also holds an 8.16 per cent stake in the Waha concession as part of the Oasis Group, with US joint venture partners ConocoPhillips and Marathon Oil Company.

The group renegotiated its existing production-sharing contract with the state-run NOC in early 2009.