Image: The Wall Street Journal
Italian energy major ENI will acquire half of BP’s Libyan oil and gas license, the company said in a statement on Monday.
The companies, together with the national oil company of Libya – The National Oil Corporation signed a letter of intent in London to launch the process which will see Eni acquiring a 42.5 percent stake in BP’s Exploration and Production Sharing Agreement (EPSA) in Libya.
BP holds a 85 percent interest of the second party share in two blocks, with the Libyan Investment Authority holding the remaining 15 percent.
All agreements will be finalized by the end of the year, with the aim of restarting exploration activities in contractual onshore areas A and B, and offshore C next year.
“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,” Eni CEO Claudio Descalz said.