Total and Libya’s National Oil Corporation (NOC) have completed a deal in which the French major will enter as a partner in the Waha concessions in the Sirte Basin of Libya.
Total will invest $650 million in the development of two main projects, North Gialo and NC 98, resulting in a 180,000-B/D increase in production. In reaching those gains, Total will provide technology and expertise, NOC said.
The French major in 2018 received a 16.33% working interest in six Waha concessions through the $450-million purchase of Marathon Oil Libya, a subsidiary of Marathon Oil. The Waha concessions currently produce about 350,000 BOE/D.
NOC said it approved Total’s participation in the project as “no local partner has the technical or financial means to carry out the development of the concessions and to increase production."
Also part of the deal, a $150-million signature bonus will be allocated for corporate social responsibility. NOC said it will supervise the implementation of these projects in line with its community support criteria.
The completed purchase gives Total access to resources of more than 500 million BOE and promising exploration potential over the 53,000 km² area covered by the concessions.
NOC owns a 59.18% interest in the Waha concessions. The other partners are ConocoPhillips and Hess with 16.33% and 8.16%, respectively. NOC subsidiary Waha Oil Company is operator.
Total has been present in Libya since 1954. The company’s 2018 production in the country averaged 63,000 BOE/D. In addition to Waha, Total owns stakes in the offshore Al Jurf field, 37.5%; and the onshore El Sharara area, 15% in former Block NC 115 and 12% in former Block NC 186.