The 30-year deal would enable National Oil Corporation (NOC) and Occidental (Oxy) to design and implement major field redevelopment and exploration programs in the Sirte Basin, Libya.
Ray Irani, chairman and CEO of Occidental, said: Occidental is honored to be chosen to work with the Libyan National Oil Company in the redevelopment of these jointly owned producing fields. We expect production from these projects will make a major contribution to NOC meeting its goal of doubling Libya’s oil production to more than three million barrels per day in the near future.
The new agreements cover fields with approximately 2.5 billion barrels of recoverable oil reserves. Over the next five years, about $5 billion in capital investment is expected to be made to increase gross production to around 300,000 barrels per day from the current 100,000 barrels per day volume.
Austrian oil and gas company OMV will join the project with a 25% interest and Oxy retaining the remaining 75% interest. Both the companies are to contribute collectively 50% of the development capital while NOC is to contribute the remaining 50%.
