Occidental Petroleum Corporation announced the signing of the full 30-year agreements with the Libyan National Oil Company (NOC) to upgrade its existing petroleum contracts.
“We believe these new agreements with NOC represent an important step toward Libya’s goal of doubling oil production to more than 3 million barrels per day in the near future,” said Occidental Chairman and CEO Ray R. Irani.
The new agreements, which cover fields with approximately 2.5 billion barrels of recoverable high-quality oil reserves, allow NOC and Occidental to design and implement major field redevelopment and exploration programs in the prolific Sirte Basin. After capital investment over the next five years of approximately $5 billion, gross production is expected to triple from current production to 300,000 barrels per day.
Oxy began operations in Libya in 1965 and continued operating until U.S. sanctions were imposed in 1986. Oxy was the first U.S. company to resume oil operations in Libya after the U.S. sanctions were lifted in 2004.