NOC Libya Signs PSA With Shell And oxy liwa

NOC Libya Signs PSA With Shell And Oxy/Liwa

02-22-2008

The National Oil Corporation signed an Exploration and Production Sharing Agreement with Shell. The Agreement covers Area (89) in Sirt basin which Shell won in Public Bid Round 4 for gas exploration, held on 9/12/2007.

The company is committed to a minimum work program of 1750 km2 of 3D, and (6) exploration wells, at a cost of 95 million US Dollars.

The company will pay a signature bonus of 103 million US Dollars one month following GPC approval and after the effective date .

For this Purpose Shell established a new branch under the name of shell Exploration and Development Libya- GMBH1 which signed the Agreement with NOC.

The Agreement was signed by Dr.Shokri Mohamed Ghanem, NOC Chairman and Mr. Mark Hope , Country Chairman, Shell , and Mr. Mark Gerrits , General Exploration Manager Libya-branch . The signature ceremony was attended by senior officials from both parties as well NOC Management Committee members and oil companies’ executives.

NOC Libya also signed an Exploration and Production Sharing Agreement with Oxy/Liwa. The Agreement covers Area (103) in Sirte basin which was by Oxy/Liwa won through Public Bid Round 4 for gas exploration, held on 9/12/2007.

The company is committed to a minimum work program of 2,000 km of 2D, 1,000 km2 of 3D and (3) exploration wells, at a cost of 70 million US Dollars.

The company will pay a signature bonus of 10 million US Dollars one month following GPC approval and after the effective date .

The Agreement was signed again by Dr.Shokri Mohamed Ghanem, NOC Chairman and Mr. John Winterman, General Manager, Oxy Libya branch, and Dr. Mohsen Khazam, General Manager of Liwa Libya branch. The signature ceremony was attended by senior officials from both parties as well as NOC management Committee members and oil companies’ executives.