BG Group to Enter Libya with Licensing Round Awards
BG Group has been successful in its bid for exploration licenses in Area 123 (blocks 1 & 2), and Area 171, (blocks 1, 2, 3 & 4), in the recent Libyan licensing round held on October 2, 2005.
BG will assume 100 percent ownership and operatorship of the Exploration and Production Sharing Agreements (EPSA) for Area 123 (blocks 1 & 2) and a 50 percent interest in the EPSA for Area 171 (blocks 1, 2, 3 & 4) in partnership with Statoil (operator). The award of the three licenses is subject to ratification by the General People's Committee of Libya, following which an aggregate cash consideration of US$15.5 million will be payable on the signing of the EPSAs.
BG Group Executive Vice President for the Mediterranean Basin and Africa, Stuart Fysh, said: "Libya is a prolific hydrocarbon province which is well placed in the Mediterranean region for the markets of Europe and North America. The award of these largely unexplored blocks represents BG's entry into Libya and offers a good mix of acreage in both an established basin and a frontier area."
Blocks 1 and 2 of Area 123 are located onshore in the Sirt basin and cover approximately 4,750 square kilometers in total. The EPSA work obligation for both blocks involves acquiring seismic and one exploration well on each block. Area 171, which contains four blocks, is located onshore in the Kufra basin and covers approximately 11,000 square kilometers. The EPSA work obligation for this Area involves acquiring seismic and two exploration wells.
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