LIBYA: EXPLORATION CONTRACTS FOR ITALIAN OIL GIANT
LIBYA: EXPLORATION CONTRACTS FOR ITALIAN OIL GIANT
Tripoli, 4 Oct. (AKI) - Italian oil giant ENI - Europe's fourth largest energy group - has topped an international tender, acquiring exploration permits in four Libyan plots - more than any other country - in Libya's second auction since oil was found in the country in 1959. Italy was among 19 winners in what Libyan prime minister Shokri Ghanem described as a "very competitive" auction to obtain the right to search for oil and gas in an area covering 92,850 square kilometres.
ENI won permits in Murzuk in southwestern Libya, consolidating its position in an oil-rich area where it already producing oil in its El Feel field, and in the Kufra basin in the eastern part of the country - another oil-rich area. The permits grant ENI - which has been in Libya for 50 years - rights to explore six new oil wells and carry out geological surveys of 7,500 square kilometres of terrain. It currently produces approximately 190,000 barrels per day and 10 billion cubic metres of gas annually in Libya.
The 19 companies who won permits in this month's auction will have to share production in any oilfield they find with Libya's state-owned National Oil Corp., and were chosen because they offered to keep the lowest percentages of production.
Aside from ENI, winners include Exxon Mobil - the world's largest energy group and the only US firm to win acreage - Japan's Mitsubishi Oil, the UK's BP Group, PT Pertamina of Indonesia, and China National Petroleum.
Permits to search for oil and gas in 26 offshore and onshore plots were offered. In the end, about 55 companies made bids for 23 plots, leaving three without any taker - two in the central region of Sirte - which already produces oil - and one in the eastern region of Cyrenaica. Algeria's state-owned Sonatrach, the only bidder from Africa, failed to secure a permit in the auction.
India's largest oil company, Oil and Natural Gas, and Indian Oil Corp and Oil India Ltd. were also successful bidders. In January, the state-owned Indian Oil Corp. and Oil India Ltd - won a contract to explore a 7,087 square kilometre block in the Sirte Basin. They were among eight companies who bid successfully for oil exploration and production sharing agreements covering a total 27,000 square kilometres and dig 24 exploration wells.
Libya is seeking massive foreign investment following the lifting of US sanctions imposed in 1986 because of terrorism accusations, allowing US companies to return to the country. American companies secured the largest number of contract offered in January, with three US firms - Occidental Petroleum Corporation, Amerada Hess and Chevron Texaco - winning 11 out of 15 oil exploration and production sharing agreements.
Libya has proven reserves of 29.5 billion barrels of oil, the country's main source of revenue.
Tripoli, 4 Oct. (AKI) - Italian oil giant ENI - Europe's fourth largest energy group - has topped an international tender, acquiring exploration permits in four Libyan plots - more than any other country - in Libya's second auction since oil was found in the country in 1959. Italy was among 19 winners in what Libyan prime minister Shokri Ghanem described as a "very competitive" auction to obtain the right to search for oil and gas in an area covering 92,850 square kilometres.
ENI won permits in Murzuk in southwestern Libya, consolidating its position in an oil-rich area where it already producing oil in its El Feel field, and in the Kufra basin in the eastern part of the country - another oil-rich area. The permits grant ENI - which has been in Libya for 50 years - rights to explore six new oil wells and carry out geological surveys of 7,500 square kilometres of terrain. It currently produces approximately 190,000 barrels per day and 10 billion cubic metres of gas annually in Libya.
The 19 companies who won permits in this month's auction will have to share production in any oilfield they find with Libya's state-owned National Oil Corp., and were chosen because they offered to keep the lowest percentages of production.
Aside from ENI, winners include Exxon Mobil - the world's largest energy group and the only US firm to win acreage - Japan's Mitsubishi Oil, the UK's BP Group, PT Pertamina of Indonesia, and China National Petroleum.
Permits to search for oil and gas in 26 offshore and onshore plots were offered. In the end, about 55 companies made bids for 23 plots, leaving three without any taker - two in the central region of Sirte - which already produces oil - and one in the eastern region of Cyrenaica. Algeria's state-owned Sonatrach, the only bidder from Africa, failed to secure a permit in the auction.
India's largest oil company, Oil and Natural Gas, and Indian Oil Corp and Oil India Ltd. were also successful bidders. In January, the state-owned Indian Oil Corp. and Oil India Ltd - won a contract to explore a 7,087 square kilometre block in the Sirte Basin. They were among eight companies who bid successfully for oil exploration and production sharing agreements covering a total 27,000 square kilometres and dig 24 exploration wells.
Libya is seeking massive foreign investment following the lifting of US sanctions imposed in 1986 because of terrorism accusations, allowing US companies to return to the country. American companies secured the largest number of contract offered in January, with three US firms - Occidental Petroleum Corporation, Amerada Hess and Chevron Texaco - winning 11 out of 15 oil exploration and production sharing agreements.
Libya has proven reserves of 29.5 billion barrels of oil, the country's main source of revenue.
posted by Marcel at 2:14 PM
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