Libya grants 15 oil exploration licenses, US companies get lion's share

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Libya grants 15 oil exploration licenses, US companies get lion's share

from AFP
Entered into the database on Saturday, January 29th, 2005 @ 21:15:32 MST

Untitled Document TRIPOLI (AFP) - Libya granted its first oil exploration licenses in over four decades, awarding 15 permits to foreign companies, with US companies taking the lion's share.

Occidental Petroleum Corp of the United States picked up five licenses, and shares rights in four others with the Australian company Woodside Petroleum Ltd.

ChevronTexaco received a license to explore the Marzouk basin south of the capital Tripoli. The US company Amerada Hess also won a license.

India Ltd and India Corp received a license to explore the Syrte region.

Verenex Energy Inc of Canada, Algeria's Sonatrach, and Medco Energy International of Indonesia also won licenses.

The 15 licenses give rights to search for oil over 127,000 square kilometers (51,000 square miles) of territory.

With Africa's largest reserves, Libya is seeking massive investment to boost its oil sector, whose development was stunted under international sanctions imposed following the bombing of a Pan Am passenger jet over Lockerbie, Scotland in 1988.

With those sanctions eased after Libya agreed to pay compensation in 2003, the country held its first tender for exploration licenses since oil was found in 1959.

Each company that received a license is expected to invest 750 million dollars into exploration, with much more for extraction of any oil found. The Libyan government is to get part of any oil produced.

Prime Minister Shukri Ghanem, who opened the ceremony of awarding the licenses, said Libya has opted for a policy of open communication and the objective is total transparence."