Although not yet completely finalised, the fiscal terms are more attractive than the previous EPSA-3 licensing round. Each concession will be individually negotiated, with NOC having a likely maximum back-in right on commercial discovery of up to 50 per cent, compared with the maximum 85 per cent it is currently entitled to. Companies will put forward a production multiplier known as 'M', which will be the primary factor for bid evaluation. The 'M' factor will be multiplied by NOC's fixed share to determine the production available for cost recovery.

In addition, each block will have a set production bonus, with NOC paying any income or production tax the successful companies are liable for. However, Prime Minister Shukri Ghanem has stated that the amount of tax and royalties companies will have to pay - if any - has yet to be determined.

EPSA-4 will be Libya's first licensing round since it declared its intention to dismantle its weapons of mass destruction and rehabilitate itself with the global economy. The subsequent easing of sanctions has meant that EPSA-4 has created intense interest from US and UK firms eager to take advantage of the country's untapped potential. Following the Algerian model, Tripoli says the licensing round will be the first of many such public licensing rounds if it proves a success (see Cover Story; MEED 14:5:04; 30:4:04).