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 which will launch the process for Eni to acquire a 42.5% 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 also 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 programs.
The agreement will see Eni 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. 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 finalize 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 optimizing the use of existing Libyan infrastructure”, stated Eni CEO Claudio Descalzi.
“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,” commented NOC Chairman Mustafa Sanalla.
BP Group Chief Executive 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.”