Occidental, Libyan NOC reach 30-year agreement for Sirte Basin
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Drilling Activity Summary
Description
Occidental Petroleum Corp., Los Angeles, has agreed to new terms on several of its existing petroleum contracts with Libya's National Oil Corp. (NOC). The 30-year agreements cover Occidental's projects in the Sirte Basin. Recoverable reserves in the fields are some 2.5 billion bbl. During the next five years, Occidental, Austrian firm OMV and NOC will spend about $5 billion to increase gross production to more than 300,000 bbl. a day. Currently, the fields make 100,000 bbl. a day. Oxy (75% interest) and OMV (25%) will contribute half the funds and NOC will supply half. Oxy and OMV will receive 10% or 12% of after-tax gross production, depending on the field. The companies will also pay a $1-billion signature bonus.
Description
Occidental Petroleum Corp., Los Angeles, has agreed to new terms on several of its existing petroleum contracts with Libya's National Oil Corp. (NOC). The 30-year agreements cover Occidental's projects in the Sirte Basin. Recoverable reserves in the fields are some 2.5 billion bbl. During the next five years, Occidental, Austrian firm OMV and NOC will spend about $5 billion to increase gross production to more than 300,000 bbl. a day. Currently, the fields make 100,000 bbl. a day. Oxy (75% interest) and OMV (25%) will contribute half the funds and NOC will supply half. Oxy and OMV will receive 10% or 12% of after-tax gross production, depending on the field. The companies will also pay a $1-billion signature bonus.