Petro-Canada has signed six new exploration and production sharing agreements with the Libyan National Oil Corporation, concerning the redevelopment of existing fields in Libya.
The new exploration and production sharing agreements (EPSAs) have an expected duration of 30 years and will result in the redevelopment of existing producing fields by Harouge Oil Operations, which is a joint venture operation co-owned by Petro-Canada and NOC. The EPSAs also cover a significant exploration program operated by Petro-Canada.
Under the new agreements, Petro-Canada will pay 50% of all development costs and will receive an initial 12% entitlement share of production. Petro-Canada estimates that there are gross contingent and prospective resources of almost two billion barrels of oil associated with the redevelopment program, requiring a total investment of approximately $7 billion gross.
Over the next five to seven years, the redevelopment program is expected to double current production levels from existing fields to approximately 200,000 barrels of oil per day gross.
Petro-Canada also expects to invest $460 million for an exploration program in the Sirte region in Libya. In the last program, seven successes were achieved from the nine exploration and appraisal wells drilled by Harouge Oil Operations.
The proposed exploration program includes 10,000sqkm of 3D seismic, 600km of 2D seismic, and 50 exploration and appraisal wells. Petro-Canada will pay 100% of all exploration costs.