RWE Dea North Africa and Middle East Branch and the Libyan National Oil Corporation (NOC) have signed an “Exploration and Production Sharing Agreement IV” (EPSA IV) covering Blocks NC 193 and NC 195 in the Sirte Basin.
Upon ratification of this Agreement by the Libyan Government and the Declaration of Commerciality for the eight discoveries of RWE Dea in these areas, the way will be paved for the Joint Venture between NOC and RWE Dea to expand its activities in Libya.
“With this Agreement, RWE Dea developed its activities in Libya into a long-term perspective for oil and gas production,” said Ralf to Baben, Chief Operating Officer of RWE Dea AG. The signed EPSA IV will allow RWE Dea to continue the successful exploration work in these areas whilst in parallel working with NOC towards rapid field development of the discoveries. RWE Dea plans to invest a minimum of about 50 million US dollars in exploration and the Joint Venture plans to spend additional 1,300 million US dollars (of which RWE Dea share is 50%) on field development activities. These will be carried out by a Joint Operating Company to be incorporated by NOC and RWE Dea. Production start from the Blocks is envisaged for 2014 and 2015, respectively.
RWE Dea has been operating in Libya, one of the most important regional focal areas in terms of the upstream business of the company, since June 2003.