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PGNiG Finalizes its E&P Agreement with NOC Libya
02-27-2008
Over the next six years, PGNiG is
planning to invest at least USD 108m in the exploration and production of
natural gas and crude oil in Libya.
On Monday, February 25th 2008, Polish Oil&Gas Company-Libya B.V. (POGC-Libya B.V.),
a subsidiary of PGNiG S.A., signed the Exploration and Production Sparing
Agreement (EPSA) with the Libyan state-owned National Oil Corporation (NOC).
National Oil Corporation also signed the Production Sharing Agreement with
Polskie Górnictwo Naftowe i Gazownictwo S.A.
The Exploration and Production Sharing Agreement (EPSA) covers the area of
Licence 113 within the Murzuq Basin. PGNiG S.A. acquired this licence in
December 2007, in the 4th Round of the Public Tender for the exploration and
production of natural gas.
Block No. 113, with an area of 5,494 km2, is situated at the borderline between
the Murzuq and Gadamesh Basins, close to the Algerian border. Main prospects
there are structural and stratigraphic traps in Ordovician, Devonian and
Carboniferous clastic rocks, where natural gas deposits are expected to be
discovered.
POGC-Libya B.V. undertook to implement a minimum work programme for the total
amount of USD 108m, including:
- 3m000km of 2D seismic
- 1,500km2 of 3D seismic
- 8 drilling wells.
The Agreement was signed by Mr Jacek Gutowski, Managing Director of POGC-Libya
B.V., and Mr Filip Moczydlowski, Deputy Managing Director of POGC-Libya B.V., on
behalf of the Polish party, and Dr Shokri Ghanem, President of NOC, on behalf of
the Libyan party.
The Agreement with the Libyan party is the coping stone of the work performed to
date to obtain access to Libyan hydrocarbon resources. Under the Agreement,
PGNiG, acting through a branch of its subsidiary, POGC-Libya B.V., has become
the operator of the block, thus obtaining the rights to conduct exploration work
and have a share in future production from this block, which is highly
prospective, as attested to by both natural gas deposits located in the
vicinity, and announcements of further new discoveries made in the area of this
oil basin.
Signing the EPSA with the Libyan partner is an evidence of PGNiG's intense
activity in the exploration of hydrocarbon deposits outside the territory of
Poland. It is also an element of the Company's broader strategy.
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