National Oil Corporation and Eni and BP Have Agreed to Resume Exploration in Libya

Source Press Release
Company BP Plc.ENI 
Tags Asset Deals, Deals, Upstream Activities
Date October 08, 2018

On October 8, 2018, the National Petroleum Corporation and Eni and BP signed an agreement whereby  Eni and BP will resume exploration work in Libya. Eng. Mustafa Sannallah, Chairman of the National Petroleum Corporation (NOC), Bob Dudley, Executive Director of BP Group, and Claudio Discalzi, CEO of  ENI, signed a letter of intent (LOI) in London. 

All parties agreed that ENI would receive a 42.5 percent stake in BP's exploration and production sharing agreement in Libya.  ENI will also become the operator of the exploration and production sharing agreement. BP currently has 85 per cent of the share of the exploration and production sharing agreement, while the Libyan Investment Corporation holds the remaining 15 per cent.

It is worth mentioning that Eni has exploration and production activities, as well as facilities adjacent to the offshore areas of the Convention on Exploration and Production Sharing.  Eni's supervision of the operation of these areas will contribute to the creation of opportunities for the resumption of activities, following completion of the transaction and related regulatory approvals. 

"This agreement is a clear indication of the market's recognition of the opportunities offered by Libya, which will undoubtedly contribute to the advancement of production," commented Mustafa Sannallah, Chairman of the National Oil Corporation. "Ensuring social development in the agreement is a sign of our shared commitment to our employees and the communities we work in. This initiative will drive more investment and facilitate our achievement of higher production levels.""

This is an important step towards our return to Libya, and we believe that working with Eni and Libya will accelerate our resumption of exploration in these promising areas," said BP Executive Director Bob Dudley. "

This agreement is an important step to highlight the real potential for exploration by resuming the exploration and production sharing agreement that has been in place since 2014. This step will also create an attractive investment environment," said CEO Claudio Discalze. In the country aims to restore production levels and the Libyan reserve base by optimizing the existing Libyan infrastructure. "

The Agreement on Exploration and Product Sharing includes three contractual zones, two land areas in the Ghadames basin and a sea area in the Sirte Basin with a total area of ​​54,000 km⊃;. The agreement on exploration and sharing of production was signed in 2007, but operations have been suspended since 2014. 
As part of the letter of intent, the signatories affirmed their commitment to enhance technical training and contribute to social development projects in Libya. 

As indicated in the letter of intent, the two companies intend to complete and implement all necessary agreements during the current year, with a view to resuming exploration activities in 2019.

Source: EvaluateEnergy® ©2021 EvaluateEnergy Ltd