Australian-led consortium signs Libyan oil production agreement
Australia’s Woodside Energy, Spain’s Repsol and Greece’s Hellenic Petroleum have finalized an exploration and production sharing agreement with the Libyan National Oil Corporation.
The 30-year agreement covers five exploration blocks in the onshore Sirte Basin in northern Libya and one in the onshore Murzuq Basin in western Libya.
The cost of the joint venture’s total work program with the Libyan National Oil Corporation is over $100 million with Woodside’s average yearly expenditure over this period expected to be about eight million dollars.
The minimum exploration work commitment will involve geological studies, seismic acquisition, and 13 exploration wells over six years. Included in the work commitment is a three-year feasibility study for the development of a remote field in the Murzuq Basin. This study includes an option to negotiate an agreement for the appraisal and development of this remote field within a further three years.
Woodside has a 45 percent interest in the exploration and production sharing agreement and is the project operator. Repsol holds a 35 percent interest and Hellenic Petroleum 20 percent. The three companies have also agreed to work together on marketing commercial quantities of gas that might be discovered.
Woodside’s New Ventures Director Agu Kantsler said the agreement was another step in Woodside’s strategy of building a portfolio across the key focus regions of Australia, the United States and Africa. “We are delighted to be the first Australian energy company to be welcomed into Libya since the normalization of diplomatic relations between our two countries in mid-2002,” he said.
“Libya is one of the world’s most prolific oil and gas provinces with proven reserves of about 29.5 billion barrels of oil and 46.4 trillion cubic feet of gas. “This agreement will provide Woodside and its partners with access to 20,000 square kilometers of highly attractive acreage with excellent oil and gas potential in two basins which, together, have an undiscovered potential of 35 billion barrels,” added Kantsler.
Woodside Energy is Australia's largest independent oil and gas exploration and production company by market capitalization. It operates Australia’s largest resource project, the North West Shelf Venture, an LNG, natural gas, condensate and crude oil operation off Western Australia. The company currently has interests in Mauritania, the Canary Islands, Algeria, Kenya and Libya. — (menareport.com)
© 2003 Mena Report (www.menareport.com)