Eni set to assume control of offshore/onshore Libya contract areas
Offshore staff
LONDON – BP, Eni, and Libya’s National Oil Corp. (NOC) have signed an agreement that will likely lead to the two IOCs resuming exploration in Libya.
NOC chairman Mustafa Sanalla signed a letter of intent (LOI) with BP chief executive Bob Dudley and Eni CEO Claudio Descalzi.
Under the proposed agreement, Eni will acquire a 42.5% operated interest in the BP-operated exploration and production-sharing agreement (EPSA) in Libya.
BP would retain 42.5%, with the Libyan Investment Authority holding the remaining 15%.
The EPSA covers contractual areas A and B (onshore) and C (offshore). Assuming agreement can be reached, exploration activities should re-start in 2019.
Eni has existing E&P activities and infrastructure adjacent to onshore areas of the EPSA. The offshore contract area is in the Sirt basin.
BP sees benefits in the potential synergies with the existing Eni-NOC facilities andMellitah Oil & Gas (the two companies’ joint venture) operational resources, applying Eni’s fasttrack delivery model to accelerate production.
As part of the LOI, the companies also confirmed their commitment to promote technical training and other social initiatives in Libya.
10/10/2018