Latest news with #ExplorationandProductionSharingAgreement
Libya Review
5 days ago
- Business
- Libya Review
Libya's NOC & BP Sign Agreement to Redevelop Major Oilfields
Libya's National Oil Corporation (NOC) has signed a significant Memorandum of Understanding (MoU) with British energy company BP to assess the redevelopment of two of Libya's most important oilfields, Sarir and Messla, located in the Sirte Basin. The agreement marks a strategic step toward revitalizing some of the country's oldest hydrocarbon assets and exploring broader energy opportunities. Discovered in 1961 and 1971 respectively, the Sarir and Messla oilfields are among Libya's largest and most productive. However, over the years, both fields have faced declining output due to aging infrastructure and limited reinvestment. Under this new MoU, BP and NOC will jointly examine technical data, assess the remaining resource potential, and evaluate options for redevelopment, enhanced recovery, and further exploration in the surrounding areas. The agreement also includes provisions to study the potential for unconventional oil and gas reserves elsewhere in Libya. For the NOC, this partnership reflects a renewed commitment to attracting international expertise to boost production capacity and modernize the country's energy sector, which remains the cornerstone of Libya's economy. BP's return to active collaboration in Libya is especially significant. In 2007, the company signed an Exploration and Production Sharing Agreement (EPSA) with NOC covering large onshore and offshore blocks. However, the outbreak of political instability in Libya led to the declaration of force majeure and a freeze on activities. In 2022, Italian energy company Eni acquired a 42.5% stake in the EPSA and became the operator, with BP retaining an equal share and the Libyan Investment Authority holding the remaining 15%. Force majeure was officially lifted in 2023, and operations resumed in the onshore areas. BP's Executive Vice President for Gas and Low Carbon Energy, William Lin, described the new MoU as a step toward deepening collaboration with Libya. 'This agreement shows our strong interest in helping shape the future of Libya's energy sector. We hope to apply our global expertise in redeveloping major oilfields to support NOC's goals,' he said. The MoU lays the groundwork for technical studies and feasibility assessments, which could lead to renewed field development and exploration programs. If successful, the partnership could result in increased production, technology transfer, and new investment flows into Libya's oil and gas sector. Tags: AgreementBPgaslibyaLibya's National Oil Corporation (NOC)oil
Libyan Express
11-07-2025
- Business
- Libyan Express
BP to reopen Tripoli office in Q4 2025
BP enters MoU with Libya's NOC for Sarir and Messla field exploration. Photo via BP BP is set to reopen its Tripoli office in the final quarter of 2025 as part of a broader effort to relaunch its operations in Libya, the country's state-owned National Oil Corporation (NOC) announced this week. The move signals renewed international confidence in Libya's oil and gas sector after a prolonged period of political instability and operational disruption. The decision follows the signing of a memorandum of understanding (MoU) between BP and NOC in London, which outlines plans to explore the redevelopment of two of Libya's most prolific oilfields—Sarir and Messla—both located in the Sirte Basin. Discovered in the 1960s and 70s, the fields are considered strategic assets in Libya's upstream portfolio and are now the focus of new technical and commercial studies led by BP. The MoU also covers the evaluation of unconventional oil and gas resources, as well as a broader review of nearby exploration zones. BP will work closely with NOC to access and analyse technical data in order to assess future development opportunities. These studies could pave the way for BP's return to large-scale investment and signal a major expansion of its interests in the country. Since signing an Exploration and Production Sharing Agreement (EPSA) in 2007, BP's activity in Libya has faced repeated setbacks, including a force majeure declaration that stalled its operations for years. That status was lifted in 2023, when BP and its partner Eni resumed exploration in onshore areas, marking a cautious re-entry into the Libyan market. 'This agreement reflects our strong interest in deepening our partnership with NOC and supporting the future of Libya's energy sector,' said William Lin, BP's executive vice president for gas and low carbon energy. 'We hope to apply BP's experience from redeveloping and managing giant oil fields around the world to help optimise the performance of these world-class assets. We look forward to conducting thorough studies, working closely with NOC, to evaluate the resource potential of this promising region.' NOC chairman Masoud Suleiman Masoud hailed BP's return as a key milestone in Libya's efforts to restore international investment flows and strengthen technical capabilities in the energy sector. Speaking at the MoU signing ceremony in London, Masoud emphasised the importance of cooperation in areas such as skills development, training, and long-term capacity building. 'We see BP's re-engagement not only as an economic partnership but as a transfer of knowledge, technology, and global best practices that can help transform Libya's oil sector into a more competitive and sustainable industry,' he said. The agreement with BP comes as Libya intensifies efforts to stabilise its oil sector and attract global energy majors back to the country. With production currently fluctuating around 1.2 million barrels per day, Libyan authorities are aiming to push that figure to 2 million over the next few years—an ambition that hinges on foreign capital, modern infrastructure, and technical expertise. In a parallel development, NOC also signed an agreement with Shell to carry out feasibility studies for the al-Atshan field and other oil sites exclusively under NOC ownership. The deal excludes any areas with existing third-party rights and reinforces NOC's strategy of selectively partnering with global firms to maximise value from its untapped reserves.
Observer
12-05-2025
- Business
- Observer
OQEP accelerates upstream investments and LNG growth in Q1
MUSCAT: OQ Exploration and Production (OQEP), one of Oman's leading oil and gas operators, has made strategic headway in expanding its upstream portfolio and diversifying energy assets during the first quarter of 2025, setting the stage for long-term production growth and low-carbon energy initiatives. With a robust portfolio of 14 upstream assets across the Sultanate of Oman — nine of which are producing — OQEP operates or partners in a range of concessions at various stages of development. The company's recent activities underscore its dual strategy of optimising oil and gas production while opening new frontiers for exploration and sustainable energy. UNLOCKING NEW INVESTMENT OPPORTUNITIESA key development in Q1 2025 was OQEP's collaboration with the Ministry of Energy and Minerals; and global investment bank Scotiabank to market Blocks 36, 43A and 66. These are part of a broader set of 11 blocks the Ministry plans to offer to investors through 2025–2026. OQEP's central role in this effort reinforces its position as a gateway for upstream investment into Oman's petroleum sector. In March, OQEP signed an Exploration and Production Sharing Agreement (EPSA) for Block 54 with the Ministry and London-listed Genel Energy. Under a joint operating agreement, OQEP will lead operations with a 60% stake, while Genel holds the remaining 40% as a non-operator. This marks Genel's first venture into Oman, lured by the country's stable regulatory environment. The Karawan Concession, spanning 5,632 km² in the South Oman Salt Basin, is underexplored but adjacent to productive fields. Both parties plan to invest up to $25 million in early-phase activities including seismic surveys and well testing over the next three years. ADVANCING EXPLORATION IN BLOCK 47Another significant milestone was the extension of Phase 1 exploration at Block 47, jointly operated with ENI Oman BV. The Najid-1 exploration well, spudded in February 2025, is expected to determine the commerciality of promising gas prospects. The six-month extension, agreed with the Ministry in April, will allow for deeper evaluation and, if successful, may lead to a second development phase. BOOSTING OIL OUTPUT FROM BLOCK 60OQEP also reported 86% progress in the Bisat C Expansion at Block 60 — its flagship oil asset, contributing 17% of the company's Q1 production. Once completed, the expansion will add 37,000 barrels per day (bpd) in oil processing capacity and 400,000 bpd in water treatment. Commissioning is targeted for Q3 2025, solidifying Block 60's role as a core revenue generator.
Observer
25-03-2025
- Business
- Observer
Oman to market 11 new oil & gas blocks in 2025
MUSCAT, MARCH 25 OQ Exploration & Production (OQEP), one of Oman's largest oil and gas firms, has been tapped by the Ministry of Energy and Minerals to assist in the joint marketing of as many as 11 new concession blocks envisaged for launch as part of multiple bid rounds during 2025. The new mandate underscores majority state-owned OQEP's increasingly prominent presence in Oman's vital upstream energy sector. The company currently oversees a high-quality portfolio of 15 upstream oil and gas assets in Oman, ranging from those in the development and production phase to others being appraised for commerciality or undergoing exploration programmes. The list includes six producing assets, which contributed a significant 228k barrels of oil equivalent per day (boepd) of hydrocarbons in 2024 –equivalent to around 14 per cent of Oman's total oil and gas production. Publicly-traded OQEP's additional role in the marketing of Oman's open acreage coincided with the unveiling last month of a new Licensing Round offering three onshore concessions - Block 43A, Block 66, and Block 36. In a filing to the Muscat Stock Exchange (MSX) at the time, the company disclosed that the licensing round was launched in collaboration with OQEP, as well as Scotiabank – Canada's leading international bank and financial services provider. Ahmed al Azkawi, CEO – OQEP 'This announcement comes as part of the cooperation framework between OQEP and the Ministry of Energy and Minerals, which aims to bring new investments into the exploration and production in Oman. On this occasion, OQEP would like to express its greatest gratitude to the Ministry of Energy and Minerals for its trust in OQEP,' Ahmed al Azkawi, CEO – OQEP, stated in the filing. Elaborating on the scale of this collaboration with the Ministry, the CEO revealed in the company's 2024 Annual Report that it would assist in the marketing of a further 11 open concession areas in 2025. 'The Ministry of Energy and Minerals has announced the launch of new investment opportunities in the oil and gas Blocks 36, 43A and 66 in cooperation with OQEP and Scotiabank, with 11 additional blocks underway in 2025, which aims to bring new investments in the exploration and production sector in Oman. The award is subject to requisite formalities including new concession agreements and new partnerships,' Al Azkawi stated in the MDA report. Working alongside the Ministry and OQEP in the marketing of the new Omani acreage is Toronto-based Scotiabank, billed as a global leader in oil and gas M&A advisory, with specialized finance and technical professionals dedicated to the energy sector. More recently, OQEP added its 15th asset - Block 54 - to its expanding upstream portfolio. It follows the signing by the Ministry of an Exploration and Production Sharing Agreement (EPSA) with the partnership of OQEP (with a 60 per cent operating interest) and London-based Genel Energy (with 40 per cent non-operating interest) to develop the 5,632 km2 concession in Al Wusta Governorate.
Muscat Daily
11-03-2025
- Business
- Muscat Daily
OQEP, Genel Energy to develop Block 54 in Oman
By OUR CORRESPONDENT Muscat – Oman's Ministry of Energy and Minerals has entered into an Exploration and Production Sharing Agreement (EPSA) with OQ Exploration and Production (OQEP) and Genel Energy to develop Concession Block 54 in the sultanate. Block 54, known as the 'Karawan Concession', spans an area of 5,632 sqkm in Al Wusta Governorate. The agreement was signed by H E Eng Salim Nasser al Aufi, Minister of Energy and Minerals, Ahmed al Azkawi, CEO of OQEP, and Paul Weir, CEO of Genel Energy. Under the terms of the agreement, OQEP will hold a 60% operating interest in Block 54, while Genel Energy will retain the remaining 40% as a non-operating partner. The initial phase of the agreement, lasting three years, will involve investments of up to $25mn. This will include the execution of 3D seismic surveys, the drilling of exploration wells, and the re-evaluation of existing wells. The agreement will come into effect upon the promulgation of a Royal Decree ratifying its terms. H E Aufi said, 'The execution of this agreement marks a pivotal step in Oman's efforts to enhance hydrocarbon exploration and development. Through the expansion of exploration activities in concession areas, in collaboration with OQEP and Genel Energy, we reaffirm our steadfast commitment to increasing hydrocarbon reserves and ensuring sustained production. This initiative reinforces Oman's appeal as a prime investment hub for the energy sector, underpinned by a competitive environment that offers unparalleled opportunities for leading international companies.' He added, 'The development of Block 54 is a testament to our ambitious strategy to explore new frontiers and optimise the use of our natural resources, building upon OQEP's proven track record, notably exemplified by the substantial production growth in the Bisat field. We are confident that this agreement will deliver tangible outcomes, sustaining oil and gas production and making a significant contribution to the national economy.' Azkawi said, 'With the signing of EPSA for Block 54, OQEP demonstrates its unwavering commitment to leveraging our substantial expertise to drive further growth. We are delighted to collaborate with Genel Energy. This partnership solidifies OQEP's achievements and integral contributions to Oman's upstream sector. The incorporation of Block 54 as our fourth operated asset, in partnership with a leading international player, validates OQEP's robust operational capabilities. We extend our sincere appreciation to the Ministry of Energy and Minerals for this opportunity and their trust in OQEP, and we are eager to foster a successful and enduring partnership with Genel Energy.' Paul Weir said, 'We identified Oman some time ago as a preferred jurisdiction for geographical diversification, with its flawless track record and the significant steps it has taken in recent years to set its oil and gas sector up for an exciting future. It is therefore the ideal country for Genel to begin its strategic diversification, expand its portfolio and invest capital. We are delighted to be partnering with OQEP and the Ministry of Energy and Minerals on this exciting opportunity and look forward to working together to unlock and expand this contingent resource.' 'We see this entry as an important first step towards achieving our strategic goal of diversification, establishing a significant and profitable presence in Oman, and diversifying our cash generation,' he added.
