Total Operations in Libya

=History=

Total has been present in Libya for 50 years. In 2012 Total was involved in a partnership with the Libyan National Oil Corporation (NOC) on a number of projects, including the development of the Mabruk field in the Sirte Basin, and the Al Jurf field near the Tunisian border.

Total’s production in Libya was halted in spring of 2011 amid rising turmoil in Libya, first at the Mabruk field and later at Al Jurf. However production was relaunched at the Al Jurf field in late September of the same year.

The UK's Guardian reported that the rebel leaders who overthrew Gaddafi made clear that countries active in supporting their insurrection (notably Britain and France) should expect to be treated favourably in the post-war industry. However the government in Tripoli denied the existence of a reported secret deal by which French companies would control more than a third of Libya's oil production in return for French support for the revolution. The French foreign minister also claimed to be unaware of the reported deal.

=Activities and contracts=

The development of the Mabruk oil field, a tight and complex field 170 kilometres south of Sirte, began in 1994. The field is jointly operated with Statoil and Total owns 37.5 percent of the field’s operating company. The Mabruk field was producing 30,000-50,000 barrels per day (bpd) of crude before operations were halted in 2011.

Total also operates the offshore Al Jurf platform jointly with a Libyan state oil company and German producer Wintershall. The NOC enjoys a 50 percent share of the venture, Total 37.5 percent and Wintershall the remaining 12.5 percent.

In 2009, the consortiums in which Total is involved renegotiated the terms of their production contracts with the NOC in line with Libya’s preferred EPSA rubric. The renegotiated terms included the payment of a US $500 million up-front signing bonus. Under the new contracts, each consortium would henceforth take 27 percent of oil production, down from 50 percent under the previous agreement. However, the production share agreed by Total was still greater than those recently negotiated by other international oil companies (IOCs), according to a leaked US diplomatic cable.

=References=