UK-based oil majors BP and Shell have signed agreements to work on potentially developing hydrocarbon assets in Libya, which has become Africa’s biggest oil producer.
First, BP signed a memorandum of understanding (MoU) with the National Oil Corporation (NOC) of Libya to assess opportunities in the Sirte Basin. This includes possibly redeveloping the mature Messla and Sarir giant oilfields and assessing exploration opportunities in adjacent locations. The wider potential of the country’s unconventional hydrocarbon resources will also be researched.
BP, which also makes the Castrol coolant and lubricant ranges, is planning to reopen its office in Tripoli later this year.
An executive vice president at BP, William Lin, said the agreement was a reflection of the company’s desire to support the energy sector in Libya and strengthen its collaboration with NOC. He added:
“We hope to apply BP’s experience from redeveloping and managing giant oil fields around the world to help optimise the performance of these world-class assets. We look forward to conducting thorough studies, working closely with NOC to evaluate the resource potential of this promising region.”
In a separate meeting in London, Shell signed its own agreement with NOC for the al-Atshan field, as well as potentially other fields that the NOC owns in full. The agreement covers assessing the prospects of the fields and evaluating the economic feasibility of developing them. The deal was announced by NOC in a press release and later confirmed by Shell in response to the Financial Times.
