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NOC Libya and PetroCanada Signed New Agreements

12-11-2007

PetroCanada Signed an agreement with NOC Libya to modify and improve the terms and conditions of previous agreements in light of the significant change of circumstances influenced by the increases in the oil and gas prices and demand.

The agreement has been signed by Dr. Shokri Mohamed Ghanem chairman of National oil corporation and MR. Ron Brennaman, Chief Executive Officer of PetroCanada. Some of these agreements were signed in the sixties and eighties. The modified agreement will adopt EPSA 4 format, and will result in reduction in the shares of the second party to levels below the current shares which will be further reduced as production increases. One thousand million dollars signature bonus has been accepted by Petrocanada and agreement to participate in investment plan of more than 7 billion Dollars in development & exploration projects to improve & increase production in the active producing fields subject of the new agreements. The expected investment plan will result in a total increase in the oil reserve to over two billion barrels of oil.

The new agreements will also include dedicated programs for developing and training Libyan staff and executing engineering works in Libya with due consideration for sustainable development and environment protection.

The agreement will be referred to General Peoples' Committee for ratification will take Effect As of 1-1-2008. It is worth noting that NOC has signed other two similar agreements with ENI, Oxy&OMV Companies on 16 /10/2007 and 24/11/2007 respectively .

NOC is currently discussing with other international oil companies; IOCs, to convert and modify the petroleum agreements held with them to the new EPSA IV format.