Petro-Canada (PCZ) signed a 30-year exploration and development agreement with Libya’s National Oil Corp.
to jointly redevelop major oil fields and exploration programs in the Sirte Basin.
Petro-Canada, a Calgary-based oil company, said it will pay a signature bonus of $1 billion in three stages, with the first payment due upon ratification of the contracts, expected in 2008.
Petro-Canada said it will also pay 50% of all development capital and will receive a 12% entitlement share of production.
The redevelopment program is estimated to require a total investment of $7 billion, Petro-Canada said.