By OGJ editors
HOUSTON, Dec. 29 -- ConocoPhillips reported that after reaching an agreement with Libya's National Oil Corp. (NOC), it will return to its former oil and gas production operations in Libya along with coventure partners Marathon Oil Co. and Amerada Hess Corp.
ConocoPhillips and its coventures suspended operations in Libya in 1986.
Under the new agreement, ConocoPhillips and its partners will return to their former exploration and production interests in the Waha concessions in Libya. ConocoPhillips and Marathon each will hold a 16.33% interest, Amerada Hess will hold an 8.16% interest, and the NOC will hold the remaining 59.16% interest.
The concessions, which currently produce about 350,000 b/d of oil, cover nearly 13 million acres in the Sirte basin.
ConocoPhillips would expect to add about 45,000 net b/d of oil to its production profile, based on the current gross production figure from the concessions.
The reentry terms include a 25-year extension of the concessions to 2031-34; a payment to NOC of $1.3 billion for reentry and the extension of the concessions; and a contribution to unamortized investments made since 1986 of $530 million that were agreed to be paid as part of the 1986 standstill agreement to hold the assets in escrow for the US-based coventurers.