Petróleo Brasileiro S/A says it was one of the successful bidders in the first bidding round promoted by the National Oil Corp. of Libya (NOC), acquiring the exploratory rights and a share in production of Area 18, located in the Mediterranean Sea as part of a consortium with Oil Search Ltd.
The consortium bid for two more areas out of 15 put out to tender in this round. Area 18, awarded to the consortium on Jan. 29, is made up of four blocks with 10.3 sq km, and is in the offshore northeastern segment of the Libyan coastline in the Mediterranean Sea in 200-700 m of water. Major oil and gas producing fields such as Bouri, Al-Jurf, and Bahr Essalam are also in the vicinity.
Oil Search Ltd. is a petroleum company, which has operated in Papua Nova Guinea since 1929 as well as in Australia, Yemen, Egypt, and the United Arab Emirates. Under the terms of the agreement, Petrobras will be the leader and operator with a 70% share in the consortium.
The Production Sharing Contract will be signed between the consortium and NOC before the middle of February and provides for a five-year exploratory phase during which a minimum of $21 million will be invested. During the second 25-year period, production rights will be shared with NOC.
Already operating in Nigeria, Angola, and Tanzania, Libya will be the fourth African country where Petrobras has activities on the ground. The company's participation in this auction is aligned to the group's strategic plan, which includes major international growth in certain key areas such as the deep and ultra-deep waters of the African coast.
02/01/05
