OMV Operations in Libya

=History=

OMV has been present in Libya since 1975 and made a major expansion in 1985 when it acquired 25 percent of Occidental Petroleum's producing assets in the country when Occidental left the country following a deterioriation in US-Libyan relations.

Prior to 2011 Libyan oil accounted for 10 percent of OMV's global output. OMV's Libyan production was at normal levels until 20 February 2011, when it was halted due to the anti-Gaddafi revolt in the country. Company officials stated in September 2011 that looted camps and poor logistics would make a return to production in Libya slow and arduous, and could take up to 18 months for production to normalise. In August 2012 the company said that production levels for the time being would likely remain stable at 90 percent of pre-crisis levels.

=Activities and contracts=

OMV is joint venture partner in 12 Production and Exploration blocks and the daily production rate in 2010 was around 33,000 barrels of oil per day (bpd). In Libya, OMV is the operator in only one block, in the Sharara field.

Along with several other International Oil Companies (IOCs), OMV renegotiated the terms of their contracts with the Libyan National Oil Corporation (NOC) in 2008 under the new EPSA IV framework. The new terms significantly reduced production shares for the IOCs and included a US $1 billion signature bonus payable by the international companies. The new Exploration and Production Sharing Agreement (EPSA) covered two blocks, NC115 AND NC186 in the Murzuq Basin, and extended the duration of the contracts up until 2032.

Under the former agreement for Block NC115, the NOC held a 75% share and OMV 7.5%, with Repsol holding 10% and Total 7.5%). The NOC share was increased on this occasion to 87%, with OMV's share reduced to 3.9%. Repsol retained 5.2% and Total 3.9%. Under the former agreement for Block NC186, the NOC held a 60% share and OMV 9.6%, with Repsol retaining 12.8%, Total 9.6% and Saga 8%. At this block, the NOC's share under the new agreement was increased to 88% and OMV's to just 2.88%. Repsol were left with 3.84%, Total 2.88% and Saga 2.4%.

=References=