ExxonMobil Corporation has announced that its subsidiary ExxonMobil Libya has signed a heads of agreement to execute an exploration and production sharing agreement with Libya's National Oil Corporation to initiate exploration activity offshore Libya in the Sirte basin.

The agreement includes four blocks located in contract area 21, approximately 110 miles off the Libyan coast. The contract area comprises 2.5 million acres and is situated in water depths ranging from approximately 5,400 feet to ultra-deep areas of more than 8,700 feet.

ExxonMobil Libya committed to a five-year work program consisting of at least 4,000 kilometers of 2D seismic acquisition, 2,000 square kilometers of 3D seismic, and one deepwater exploration well. The agreement also stipulates the payment of a signing fee, a training program to help upgrade the skills of nationals, and other support for education in Libya.

Phil Goss, president and general manager of ExxonMobil Libya, said: We are pleased that we have reached an agreement with National Oil Corporation of Libya in contract area 21 as we believe this to be one of the most prospective unlicensed areas in the Libyan offshore.

We expect to realize substantial technical, operational and cost reduction synergies with ExxonMobil deepwater exploration efforts in the adjacent contract area 20.