BG Group signed three Exploration and Production Sharing Agreements (EPSA) for Blocks 123 (1) and 123 (2), and Area 171, (Blocks 1, 2, 3 & 4). This follows successful bids in the recent Libyan licensing round held on October 2, 2005.
BG has assumed 100 percent ownership and operatorship of the EPSAs for Blocks 123 (1) and 123 (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 licences is subject to ratification by the General People's Committee of Libya.
Blocks 123 (1) and 123 (2) 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.