Libya grants 15 oil exploration licenses, US companies get most
Sunday, January 30, 2005 9:44:54 AM
TRIPOLI (AFX) - Libya at the weekend granted its first oil exploration licenses in over four decades, awarding 15 permits to foreign companies, with US companies taking the bulk
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 Corp 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 mln usd into exploration, with much more for extraction of any oil found. The Libyan government is to get part of any oil produced
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