BP AND ENI IN LIBYA

BP - Libya's National Oil Corporation, BP and Eni today signed an agreement expected to lead to Eni and BP working together to resume exploration activities on a major exploration and production contract in Libya.

A letter of intent (LOI) was 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 have existing exploration and production activities and infrastructure adjacent to 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.

NOC chairman Mustafa Sanalla commented: "This agreement is a clear signal and recognition by the market of the opportunities Libya has to offer and will only serve to strengthen our production outlook. The agreement's social development guarantee is an important sign of our joint commitment to our staff and the communities in which we work. This initiative will hopefully drive further inward investment and facilitate higher production levels."

Bob Dudley said: "This is an important step towards returning to our work in Libya. We believe that working closely together with Eni and with Libya will allow us to bring forward restarting exploration in these promising areas."

Claudio Descalzi said: "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 optimizing the use of existing Libyan infrastructure."

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 km2. Originally awarded in 2007, work on the EPSA has been suspended since 2014.

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.

 -----

Earlier:

2018, September, 21, 10:40:00 OIL MARKET UNCERTAINTY PLATTS - 1.4 million b/d of Iranian oil supplies to leave the market by November, when the US sanctions go into force. Venezuela, which pumped 1.22 million b/d in August could see output fall to 1 million b/d in 2019. Politically unstable Libya also presents a supply risk.

2018, September, 3, 14:55:00 LIBYAN OIL UP PLATTS - Libya's crude oil production edged up again this week, with increased output from two smaller fields in the east of the country, sources said Friday.

2018, July, 16, 10:30:00 LIBYA'S OIL DOWN 160 TBD REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.

2018, June, 20, 12:40:00 LIBYA'S OIL PRODUCTION DOWN 400 TBD PLATTS - Libyan crude production has fallen around 400,000 b/d -- or nearly halved -- due to militia attacks on the eastern oil terminals of Ras Lanuf and Es Sider, the head of the countrys National Oil Corp. said Tuesday.

2017, October, 23, 11:15:00 LIBYAN OIL PRODUCTION 1 MBD Libya’s oil production increased steeply to the current level of 850,000 b/d from a low point in August 2016 of below 300,000 b/d. Production surpassed 1 million b/d in July.

2017, July, 28, 09:55:00 LIBYA'S OIL UP TO 1.069 MBD Libya's oil production is 1.069 million b/d, and the country hopes to grow its output to as much as 1.25 million b/d this year, a source close to production said Monday.

2017, January, 26, 18:45:00 LIBYA NEEDS $100 BLN Libya froze all new foreign investment in 2011 after the civil war that toppled strongman Moammar Gadhafi. International oil companies such as Total SA of France and ConocoPhillips have long had operations in Libya, and Eni SpA of Italy has found ways to keep pumping even as clashes among warring militias and Islamic State damaged the country’s oil infrastructure.