UK supermajor BP, Italy’s Eni and Libya’s National Oil Corporation have signed a letter of intent to work together on exploration and production work in the North African nation, which has stalled since 2014 due to widespread unrest across the country.
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 will also become operator of the EPSA. BP currently holds an 85% working interest, with the Libyan Investment Authority holding the remaining 15%.
Eni has existing exploration and production activities and infrastructure adjacent to the onshore areas of the EPSA. Transferring the operatorship to Eni creates the opportunity for the resumption of activity, following completion of the transaction and relevant regulatory approvals.
The agreement includes three contract areas, two in the onshore Ghadames Basin and one in the offshore Sirt Basin, covering a total area of around 54,000km2. Originally awarded in 2007, work on the EPSA has been suspended since 2014.