Libya's National Oil Corporation (NOC) and Wintershall Aktiengesellschaft (WIAG) have signed two EPSAs for areas 91 and 107 in the Sirte Basin.
The agreement for the conversion of WIAG’s Concessions 96 and 97 to EPSA IV format takes retroactive effect as of 1 January 2008. The agreement on concessions for Area 91 (previously named Area 96) is extended till the year 2036 and for Area 107 (previously named Area 97) until the year 2037.
NOC and WIAG will establish a joint operating company (JOC) named Sarir Oil Operations Company (SOO). WIAG will be responsible for operations in the areas included in the contracts for a transitional 6-month period, after which SOO will assume operational responsibility in both areas.
WIAG will carry out exploration work, including drilling two wildcat wells in Area 107 and one in Area 91. It will also pay a $100mn signature bonus for the two agreements in addition to $50mn over a period of 10 years for corporate social responsibility and sustainable development programmes and projects which will be managed by NOC.
NOC chairman Eng. Mustafa Sanalla said: “NOC is proud to be a true and faithful guardian of the oil wealth to the Libyan people. We are pleased to start a new chapter of cooperation with WIAG, which has been operating in the Sirte Basin since 1966."