The blocks covered by the six-year agreement are block M1 in the Murzuk basin, block S36 in the Sirte basin, blocks K1 and K3 in the Kufra basin and offshore blocks O9 and O10. The blocks were put out to international bidding in 2000. Exploration costs are estimated at $90 million.

The signing of the agreement further strengthens the position of Repsol and OMV in Libya. The two companies already work together in partnership with France's Totalin the giant El-Sharara field in the Murzuk basin. They are also part of a consortium given the green light in August 2002 to proceed with a $155 million development of the A field in block NC-186, also in Murzuk, due to come on stream in the first quarter of 2004 (MEED 9:8:02).