Libya: Key BP/Eni And Total Deals Yet To Materialize

A much-hyped October deal in which Eni was to take half of BP’s stakes in three large Libya exploration blocks has yet to be finalized, while Total and NOC remain locked in a year-long dispute over the French major’s part acquisition of Waha.

Any exploration uptick Libya might have hoped for in 2019 has yet to get off the ground. BP, Eni and NOC all flagged up the possibility of 2019, even early-2019 drilling.

When BP, Eni and NOC struck a deal last October under which Eni would take half of BP’s 85% stake and operatorship of two massive and highly-prospective onshore and one offshore block, the counterparties said the deal would be finalized by year-end, with drilling to kick off in Q1 this year ( MEES, 12 October 2018 ).

But not only is near-term drilling not on the cards, the deal remains far from being finalized. Six months on from the deal being inked, BP writes in its 2018 annual report released 29 March that “The companies are working to finalize and complete all agreements with a target of resuming exploration activities in 2019.” This suggests that a deal remains a long way off with any exploration activity even further over the horizon. (CONTINUED - 1027 WORDS)


chart 1. Libya’s March Crude Output Rebounded To 1.1mn b/d following the restart of El Sharara ('000 b/d)
chart 2. Libya’s Waha Crude Output At Five-Year High, Gas At 171mn Cfd Is An All-Time-Record