Focus - Libya to offer 16 new oil blocks
NICOSIA, April 26 (Reuters) - Libya plans to open 16 new blocks for foreign investment by international oil firms, The Middle East Economic Survey (MEES) said on Monday.
''MEES learns that there are currently 16 open blocks with a total onshore area of around26,000 sq km and an offshore area of approximately 4,000 sq km,'' the newsletter said.
''It is further understood that 24 more blocks will be opened in the coming period with a total onshore area of around 47,000 sq km and an offshore area of approximately 14,000 sq km,'' MEES said.
''Libya's National Oil Corporation (NOC) plans to reopen some blocks in the Sirte Basin, along with other areas where various agreements are coming to an end, as well as to provide acreage that is currently held by the state-owned national oil operating companies,'' it added.
Earlier this month, the United Nations suspended sanctions which had been in place against Libya for seven years -- a move which focused oil and gas industry attention on investment opportunities in the country's energy industry.
Libyan Energy Minister Abdullah al-Badri has said a new petroleum law to replace 40-year-old legislation was nearing a final draft that would be presented to the General People's Congress, Libya's equivalent of a parliament, for approval and a new bidding round issued in early 2000.
''MEES learns that NOC plans to move ahead with opening the new acreage and negotiating new EPSA111 (Exploration and Production Sharing Agreements) contracts while the new draft law is being reviewed in the executive and legislative branches of the government,'' the publication said.
Badri has said there would be no bars on foreign investment in any sector of Libya's energy industry.
European companies produce roughly one third of Libya's 1.3 million barrels per day (bpd) production.
MEES said NOC was currently trying to accelerate the process of selecting foreign partners.
''One idea is to ask international oil firms to submit their names and their expression of interest in participating in a bidding round,'' it said.
NOC would then pre-qualify some of these companies, assessing their technical capabilities and their proposed financial packages, it added.
''If the bidding process is approved by the oil authorities, the target is to launch it in the near future, perhaps as soon as the end of the year,'' the Cyprus-based newsletter added.
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