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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."
