Total has reached an agreement with Libya’s National Oil Corporation (NOC) over its acquisition of a stake in the Waha concessions.
The French company will invest $650 million into the development of Waha, and a $150mn commitment to corporate social responsibility around the area.
Total signed a deal worth $450m in March 2018 with Marathon Oil, for a 16.33% stake in Waha, which was not approved by NOC.
The agreement, though, aims to settle this also includes approval from the Libyan government. Total has said it will invest in fields on the Waha concessions in addition to covering local economic development work, worth $20mn over four years.
Total revealed its intention to assist NOC on Waha through providing its technology and expertise, developing the North Gialo and NC 98 fields and supporting social responsibility programs in the areas around the oil operations. NOC will oversee the social responsibility work, with Total financing $70 million at the beginning, with another $30m when North Gialo starts up and another $30mn with NC 98.
A statement from NOC revealed approval of Total’s Waha acquisition. NOC’s chairman Mustafa Sanalla said the company withheld approval initially to inspect all aspects of the agreement.
“Total is satisfied to sign this agreement with NOC, with the agreement of the government of Libya, which definitively endorses our entry into the Waha concessions”, said Total’s chairman and CEO Patrick Pouyanné.
When the French company announced the deal with Marathon in 2018, it said this would provide it with access to more than 500mn boe of reserves and resources, in addition to the production of 50,000 boepd. In addition to the production, the deal also gave scope for exploration, with the area covering 53,000 square km. Waha was producing 300,000 boepd in 2018, with Total saying it had now reached 350,000 boepd.
NOC has a 59.18% stake in Waha, while ConocoPhillips has 16.33% and Hess 8.16%. The area is operated by Waha Oil Company, which is wholly owned by NOC.