Shell Signs Landmark Heads of Agreement to Re-enter Libya

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Shell Libya Petroleum Development BV (Shell) and the National Oil Corporation of the Great Socialist People's Libyan Arab Jamahiriya signed a Heads of Agreement (HOA) for the establishment of a long term strategic partnership in the Libyan upstream oil and gas industry.

The HOA was signed in Tripoli by Abdalla S El Badri, Chairman of the Management Committee of the National Oil Corporation, and Malcolm Brinded, Chief Executive Officer of Shell Exploration & Production and Shell Gas & Power, coinciding with the visit of the British Prime Minister, the Right Honorable Tony Blair, to meet with the Libyan Leader, Colonel Muammar al Qadhafi.

The HOA comprises the preliminary understanding of the parties regarding key principles for participation by Shell in the Libyan upstream, including onshore exploration, and the development of Liquefied Natural Gas (LNG) facilities. The HOA could lead to the development of world-class integrated upstream and LNG export projects.

Malcolm Brinded said: "I am delighted by the warm invitation to Shell from the Libyan National Oil Corporation to participate in the country's oil and gas industry. I look forward to our cooperation becoming a cornerstone in a renewed trade relationship between the UK and Libya. Today's landmark agreement provides a roadmap for future developments, which would involve Shell contributing to the efforts to enhance the country's production capabilities, and particularly its LNG export capacity."

Shell will continue negotiations on specific projects in Libya during the course of 2004.

The Royal Dutch/Shell Group of Companies was active in the Libyan upstream from the 1950s until 1974, and conducted exploration in the country in the late 1980s.

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