Energy and technology company Wintershall will invest in the exploration of the Sirte basin as its oil concession in Libya is converted to an EPSA IV format, Libya’s NOC said.
During renegotiations of an MoU signed in August 2010 between Libya’s National Oil Corporation (NOC) and Wintershall, the parties signed two EPSAs – one for Area 91, extended until 2036 and for Area 107 until 2037.
The conversion of WIAG’s Concessions 96 and 97 to EPSA IV format - the standard NOC contract that governs deals with international oil companies in Libya - takes retroactive effect as of 1 January 2008, NOC said in a statement.
Wintershall will pay US$150 million for corporate social responsibility and development as part of the deal and will carry out exploration at its own cost and bear half of the development cost, the statement added.
The NOC and Wintershall had been locked in a dispute over the German company’s concessions in Libya that had blocked up to 160,000 barrels per day of production in 2017 before an interim deal was struck to resume output.