Total has acquired Marathon Oil Libya Limited that holds a 16.33 percent stake in the Waha concessions in Libya, the company announced on Friday.
The transaction payment totals $450 million, according to the company's press release.
The Waha concessions currently produce around 300,000 barrels of oil equivalent per day (boe/d) and output is expected to ramp up and exceed 400,000 boe/d by the end of the decade, the press release said.
According to the announcement, the acquisition will give Total access to reserves and resources in excess of 500 million barrels of oil equivalent, with immediate production of around 50,000 boe/d and an exploration potential across the area of 53,000 square kilometers covered by the Concessions in the prolific Sirte Basin.
“This acquisition is in line with Total’s strategy to reinforce its portfolio with high quality and low-technical cost assets whilst bolstering our historic strength in the Middle East and North Africa region,” Patrick Pouyanne, chairman and CEO of Total said in the press release.
“It builds on the Group’s long-term presence in Libya, a country with very large oil and gas resources, and demonstrates our commitment to continue supporting the recovering oil and gas industry of the country,” Pouyanne added.
The National Oil Company of Libya (NOC) owns 100 percent of the Waha concession entity and is the operator. Shareholders include the NOC with a 59.18 percent share. Total and ConocoPhillips each hold a 16.33 percent stake, while Hess has an 8.16 percent interest.
Total has a presence in Libya since 1954. In 2017, the Group’s production was 31,500 boe/d.
By Muhsin Baris Tiryakioglu
Anadolu Agency
energy@aa.com.tr