According to a statement from Eni, the agreement, which was signed in London, will see Eni become the operator of BP's two onshore and one offshore oil exploration areas in Libya in order to restart exploration activities and fast-track exploration outcomes to production. The deal aims to boost in-country exploration and development activities and promote Libya's investment environment.
The letter of intent also "strengthens the parties' commitment to contribute to social development in the country through the implementation of social impact initiatives, including specific education and technical training programs".
According to the statement, BP holds an 85 percent working interest in the second party share in each of the three blocks, with the Libyan Investment Authority holding the remaining 15 percent.
The parties intend to finalize and execute all necessary agreements by the end of the year, with the aim of restarting exploration activities in 2019. Eni CEO Claudio Descalzi called the agreement "an important milestone" that would help unlock Libyan exploration potential by resuming EPSA operations, which remained suspended since 2014.
"It contributes towards creating an attractive investment environment in the country, aimed at restoring Libya’s production levels and reserve base by optimizing the use of existing Libyan infrastructure," he added.
NOC Chairman Mustafa Sanalla said the agreement would serve to strengthen their production outlook. "This initiative will hopefully drive further inward investment and facilitate higher production levels," he added.
According to the statement, BP's EPSA will benefit from significant synergies with Eni-NOC existing facilities and Mellitah Oil & Gas Co operational resources - applying Eni's fast-track delivery model to accelerate production.
"This will further support NOC to meet its domestic energy supply needs and promote the development of Libyan capability through training and social investment," it said.
(Anadolu Agency)