France’s Total buys $450m stake in Libya’s Waha field

04 March 2018
Deal will give Total access to in excess of 500 million barrels of oil equivalent

France’s Total has paid $450m to acquire a 16.33 per cent stake from US-based Marathon Oil in the onshore Waha concession in Libya.

The deal will give Total access to reserves and resources in excess of 500 million barrels of oil equivalent (boe), with immediate production of around 50,000 boe a day and “significant exploration potential” in concessions in the Sirte Basin, the company said in a statement.

Libya’s onshore oil and gas assets have seen significant disruption and numerous shutdowns since the 2011 uprising. After the revolution that dislodged former leader Muamar Gaddafi, the country descended into civil war as various factions struggled to control territory and gain access to the country’s oil revenues.

Libya’s oil production has been extremely volatile since 2011, often surprising forecasters with surges in production amid ongoing violence and political instability.

Despite unresolved domestic conflicts in the country, oil shipments jumped to 1.19 million barrels a day in February, the highest since Bloomberg began tracking tankers from the country in July 2014. The recorded shipments figure represented a 22 per cent increase on January's figures. Production jumped to the highest in 4-and-a-half years, averaging at 1.05 million barrels a day over February.

Total has been in Libya for decades and holds a production share of 31,500 boe/d in 2017 from concessions in the offshore Al Jurf field and the onshore Sharara field. It also has a share in Mabruk field, which has been closed for several years because of poor security.

The Waha Oil Company, a subsidiary of Libya’s state-owned National Oil Corp (NOC) and currently produces 300,000 boe/d. Total says it expects this to rise 400,000 boe/d by the end of the decade.

Libya’s National Oil Company holds a 59.18 per cent stake in Waha, with US-based ConocoPhillips holding 16.33 per cent and New York-based Hess holding the remaining 8.16 per cent.

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