BP, Eni and NOC sign deal to resume Libyan exploration

BP, Eni and Libya’s National Oil Corporation (NOC) have signed a letter of intent (LOI) launching the process for Eni to acquire a 42.5% stake in BP’s exploration and production sharing agreement (EPSA) in Libya, with the aim of boosting in-country exploration and development activities and promoting Libya’s investment environment.

The LOI also strengthens the parties’ commitment to contribute to social development in the country post-Gaddafi through the implementation of social impact initiatives, including specific education and technical training programmes.

In addition to securing a 42.5% stake, Eni will also be assigned operatorship in the contractual areas A and B (onshore) and C (offshore) in Libya. BP holds an 85% working interest of the second party share in each block, with the Libyan Investment Authority holding the remaining 15%. The parties intend to finalise and execute all necessary agreements by current year-end, with the aim of re-starting exploration activities in 2019.

‘This is an important milestone that will help to unlock Libyan exploration potential by resuming EPSA operations that have remained suspended since 2014. It contributes towards creating an attractive investment environment in the country, aimed at restoring Libya’s production levels and reserve base by optimising the use of existing Libyan infrastructure,’ stated Eni CEO Claudio Descalzi.