Business | Oil & Gas
Offers flooding in for latest oil and gas licensing round
Libya has attracted a lot of applications from companies around the world to participate in its third oil and gas licensing round since the lifting of sanctions, the state-owned National Oil said.
- Reuters
- Published: 00:00 September 27, 2006
Tripoli: Libya has attracted a lot of applications from companies around the world to participate in its third oil and gas licensing round since the lifting of sanctions, the state-owned National Oil said.
A statement on its web site said NOC's managers met on Sunday evening to evaluate the applications and select companies that qualified to compete for exploration areas.
Saif Al Islam, Libyan leader Muammar Gaddafi's most prominent son, attended the meeting, it said.
Libya wants to attract foreign investment to help it increase its oil output capacity to more than 3.0 million barrels (bpd) per day by 2010-12 from about 1.6 million bpd at present.
"The Organising and Supervising Committee examined the bidders' offers for the period from August 28 to to September 16, to select the qualified bidders in order to deliver its decision in accordance with the schedule in the announcement and submitted a report concerning the large number of offers received from companies worldwide," the statement said.
"Moreover the Management Committee discussed a wide range of subjects related to the organisation and future plans of the oil sector," it added without elaborating.
Under the amended timetable for the round, NOC should have informed applicant companies whether they have been selected by Sunday. Results are expected on December 20.
Libya last year held its first post-sanctions licensing rounds, praised for their transparency. But stiff competition meant the winning terms were so aggressive that companies may struggle to make a profit, even with oil above $70 a barrel. Libya's latest oil offering, the third since the lifting of US sanctions in 2004, lists 12 offshore blocks and 29 onshore areas. A first round offered 57 blocks, the second 44.
The NOC says less than a third of Libya, Africa's fourth largest country, has been explored for hydrocarbons. Its estimated reserves of 37 billion barrels so far have put it among the top ten oil reserves owners.
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