Libya Auctions Oil Rights
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Exxon Mobil and China National Petroleum were among winners of permits to search for oil and gas at an auction in Libya, the country with Africa’s largest crude-oil reserves.
Eni SpA of Italy was leading the bidding, with four permits. PT Pertamina of Indonesia, Nippon Oil, and Mitsubishi Oil of Japan, BG Group of Britain and Statoil ASA (in a joint bid with BG), and Norsk Hydro ASA of Norway were among other successful bidders yesterday in an auction that drew dozens of bidders.
Libya’s government awarded the rights in Tripoli yesterday. At least 49 companies registered to bid for permits in 26 onshore and offshore plots, covering 38,600 square miles, almost the size of Cuba. Companies will have to share the production of any field they discover with the government.
Libya, the eighth-largest oil producer of the 11-member Organization of Petroleum Exporting Countries, is seeking to attract $30 billion of investment to raise production this decade to 3 million barrels a day, from 1.7 million now.
It held the first auction for exploration rights in January. Until then, the nation awarded blocks after talks with companies. The auction yesterday was the second held by Libya since oil was first discovered in the country in 1959.