The agreement will see Eni acquire a 42.5 per cent stake and become operator of three of BP’s Libyan oil exploration areas in order to restart exploration activities and to fast track exploration outcomes to production
National Oil Corporation (NOC) chairman Mustafa Sanalla, BP group chief executive Bob Dudley, and Eni CEO Claudio Descalzi signed a Letter of Intent (LOI) in London.
This will launch the process for Eni to acquire a 42.5 per cent stake in BP’s Exploration and Production Sharing Agreement (EPSA) in Libya, with an aim to boost in-country exploration and development activities and promote Libya’s investment environment.
The LOI strengthens the parties’ commitment to contribute to social development in the country through the implementation of social impact initiatives, including specific education and technical training programmes.
BP holds an 85 per cent working interest of the second party share in each block, with the Libyan Investment Authority holding the remaining 15 per cent. The parties intend to finalise and execute all necessary agreements by current year-end, with the plan of re-starting exploration activities in 2019.
Eni CEO 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 optimising the use of existing Libyan infrastructure.”
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.”
BP’s EPSA will benefit from significant synergies with Eni-NOC existing facilities and Mellitah oil and gas co-operational resources applying Eni’s fast-track delivery model to accelerate production. This will further support NOC to meet its domestic energy supply needs and promote the development of Libyan capability through training and social investment.
