Operations
On 30 January 2005, Libya held its first round of oil and natural gas exploration leases since the US ended sanctions: 15 areas were offered for auctions. In October 2005, a second bidding round was held under EPSA IV, with 51 companies taking part and nearly $500 million worth of new investment flowing into the country as a result. In December 2006, Libya held its third bidding round; however, PSAs were still being signed by NOC as of April 2007. Winners of Libyan exploration area are determined based on how high a share of production a company is willing to offer NOC. Whichever company offer NOC the greatest share of profits is likely to win. In addition, oilfield developers initially bear 100% of costs (exploration, appraisal, and training) for a 5-year minimum, while NOC retains exclusive ownership. Also included in Libyan licensing rounds was open competitive bidding and transparency, joint development and marketing of non-associated natural gas discoveries, standardized terms for exploration and production (E&P), and non-recoverable bonuses.
Libya has substantial potential for exploration with an average of 16 wells per 10,000-km, whereas similar countries usually average 50 (the world average is 105). IOC exploration will use imaging technology and stratigraphic concepts, extending to the Palaeozoic basins. These include the Murzuq, Kufra and Cyrenaica Platform regions, as well as the deeper Palaeozoic plays in the semi-mature (Ghadames) and mature (Sirte) basins. In 2007 it was estimated that only around 30% of Libya has been explored for hydrocarbons. In the Murzuq Basin, shows in oilwells in the early 1980s, followed by discoveries of giant fields like Elephant in 1997, opened a vast, formerly condemned, marginal province.
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Famous quotes containing the word operations:
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—Horace Walpole (1717–1797)
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—Jean Scott Rogers. Robert Day. Mr. Blount (Frank Pettingell)
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—Henry David Thoreau (1817–1862)