BP intends to start exploration with Italian oil major Eni in Libya in the first quarter of next year. BP’s chief executive Bob Dudley told Reuters.
The UK-based supermajor holds 85 percent in an offshore oil and gas block in the North African country. The Italian major cut a deal with BP to buy half of it earlier this year.
BP signed the EPSA agreement to explore the Ghadames basin and the Sirte basin back in 2007. This will be the first project that the company will undertake in Libya’s volatile environment since the 2011 civil war.
This project depicts the boosting confidence that the Libyan authorities are in charge of the country’s oil reserves. There is a risk of production disruptions as nations warring sides are in the habit of settling their differences forcefully.
Earlier this month Eni intended to get a 42.5 percent stake in BP’s exploration and production sharing agreement with Libya’s National Oil Corporation. Reuters reports NOC will keep its 15 percent in the venture and Eni will take operators role.
“This agreement is a clear signal and recognition by the market of the opportunities Libya has to offer and will only serve to strengthen our production outlook,” NOC’s chairman, Mustafa Sanalla, said at the time.
Libya is desperate to raise its oil production to 2 million bpd and more by 2022. The country managed to grow its crude oil production to more than 1 million bpd by now despite disruptions. Together with BP/Eni, numbers could increase up to several thousand barrels daily.