OMV restarts production in Libya’s Sirte and Sharara oil fields

OMV stated that its production in Libya is expected to reach an average of 10,000 barrels a day (bbl/d) this year.

It increased its stake in four exploration and production sharing agreements in the Sirte Basin and strengthened the partnership with Libya's state-owned National Oil Corporation (NOC).

Due to improvement in the political and security situation in Libya, OMV started production in both the Sirte and Sharara oil fields. The Sharara field is located in the Murzuq basin.

In the fourth quarter of 2016, OMV’s production from Libya touched approximately 3,000bbl/d.

OMV CEO and chairman Rainer Seele said: “OMV has been a trustful partner to NOC throughout challenging times and remains fully committed to invest in Libya in the future.”

OMV also increased its stake in four exploration and production sharing agreements (EPSAs) in the Sirte Basin.

OMV bought 75% of the second party share and now holds 100% of the second party shareholding in blocks C103, NC29/74, C102 and Nafoora Augila.

NOC holds the first party share and will stay as the majority shareholder, holding a working interest of 88% to 90%.

OMV’s Libyan production is expected to reach an average of 10,000bbl/d this year.

Subject to ongoing improvements in the security situation, the transaction will provide OMV with an opportunity to increase its production in Libya to a maximum of 50,000bbl/d.

 

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Image: Libyan oil fields. Photo: courtesy of NordNordWest, Yug / Wikipedia.