BP Operations in Libya

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History

In May 2000 BP agreed a major Exploration and Production deal with Libya, announced as 'BP's single biggest exploration commitment', along with its Libyan partner the Libyan Investment Corporation (LIC). The initial exploration commitment was set at a minimum of US $900 million, with significant additional appraisal and development expenditures upon exploration success.

During the civil conflict of 2011 BP kept its operations on standby and when "force majeure" was lifted in May 2012, BP announced it would drill 17 new exploration wells in Libya, both onshore and offshore..[1] The company said in 2012 that it could spend US $20 billion in the country over the next ten years.[2]

Activities and Contracts

When the conflict broke out in 2011 BP was not carrying out any production activities in Libya, but the company had started an exploratory drilling programme in the west of the country.[3]

In 2012 BP had two exploration blocks in the country, one on-shore and one off-shore in the Bay of Benghazi. As of May 2012 the company had spent around $900 million on exploration but was in the early stages of the process. Officials did not envisage producing oil and gas for at least ten years.[4]

BP also committed to spend $50 million on education and training projects for Libyan professionals during the exploration and appraisal period, and, upon success, a further $50 million from commencement of production. The education and training programmes were intended to be designed and managed in partnership with the National Oil Corporation (NOC).[5]

References

  1. "BP commits to Libyan exploration campaign" Reuters, 1 November 2012.
  2. "BP to resume oil operations in Libya" BP, 29 May 2012.
  3. "BP's contracts in Libya 'still valid' despite turmoil" The Telegraph, 17 March 2011.
  4. "BP to resume oil operations in Libya" BP, 29 May 2012.
  5. "BP Agrees Major Exploration and Production Deal with Libya" BP, 29 May 2007.