Statoil Awarded Two Exploration Blocks in Libya

Statoil has been awarded operatorship for two licenses in a bidding round for exploration and production sharing agreements in Libya. The group will have a 100 per cent holding in license Cyrenaica 94, and a 50-50 share with British Gas (BG) in license Kufra 171.

The bids were based on a so-called 'X factor', which is the percentage share Statoil needs to cover its investments and return, with a signature bonus in addition.

"Competition for blocks in Libya is fierce, and we're very pleased to get our first operatorships in this country," says Brian Mitchener, vice president for global exploration in Africa in Statoil's International Exploration & Production business area.

"We plan to shoot seismic in 2007 and expect to drill the first exploration well in 2008 at the earliest."

The X factor for license 94 was 24.9 percent. Statoil also has to pay a signature bonus of US $2.95 million.

In license 94, the group is committed to gathering 3,000 kilometers of 2D seismic and drilling one well.

For license 171, the X factor was 19.8 percent and the signature bonus for Statoil and BG totaled US $1.001 million.

In license 171, the group will shoot 2,000 kilometers of 2D seismic and drill two wells.