Libya’s National Oil Corporation (NOC) approved Total’s acquisition of Marathon Oil’s stake in the Waha field on Wednesday.
The French supermajor, which acquired 16.33% of the asset, had initially signed a $450 million deal with Marathon Oil in March 2018, but had not yet secured approval from NOC.
Through its planned $650 million investment, Total plans to increase production by 180,000 barrels per day through development of the North Gialo and NC 98 projects.
“When Total announced the purchase of Marathon Oil Libya Limited (MOLL)’s stake in the Waha concessions through the acquisition of for a price of $450 million, NOC withheld its approval until it had the opportunity to scrutinise the deal in all its legal, contractual, financial and investment aspects,” said NOC chairman Mustafa Sanalla.
“In addition, NOC considered the feasibility of NOC or other Libyan entities acquiring that stake, versus what Total could bring to the concessions on a technical level and to the regions adjacent to them through social development. NOC also sought the government approvals necessary to complete the deal.”
As part of the acquisition, NOC obtained a $150 million signature bonus to be utilized for corporate social responsibility projects in the area surrounding the asset.
Ownership of the Waha concession is comprised of NOC (59.18%), Total (15.33%), ConocoPhillips (16.33%) and Hess (8.16%), with the asset operated by the Waha Oil company, a 100% NOC-owned entity.