Libya: Oil and gas Eni to Acquire 42.5 % Interest in BP-Operated Exploration and Production Sharing Agreement
The National Oil Corporation, BP and Eni have signed an agreement according to which Eni will resume exploration work in Libya. The exploration and production sharing agreement operations have remained suspended since 2014 in the region.
London/UK – A letter of intent (LOI) was recently signed in London by National Oil Corporation chairman Eng. Mustafa Sanalla, BP group chief executive Bob Dudley and Eni chief executive officer Claudio Descalzi. The parties agreed to work towards Eni acquiring a 42.5 % interest in the BP-operated exploration and production sharing agreement (Epsa) in Libya. On completion, Eni would also become operator of the Epsa. BP currently holds an 85 % working interest in the Epsa, with the Libyan Investment Authority holding the remaining 15 %.
Eni has existing exploration and production activities and infrastructure adjacent to onshore areas of the Epsa. Transferring the operatorship to Eni will help to unlock the Libyan exploration potential by resuming Epsa operations that have remained suspended since 2014. The Epsa includes three contract areas, two in the onshore Ghadames basin and one in the offshore Sirt basin, covering a total area of around 54,000 sq km. As part of the LOI, the signatories also reconfirmed their commitment to promote technical training and other social initiatives in Libya. As set out in the LOI, the companies intend to finalise and complete all agreements by the end of this year, with a target of resuming exploration activities in 2019.