The Libyan OIL Corporation (NOC) and the German oil company R W E Dia North Africa and Middle –East, on Wednesday 24/11/2010 signed an agreement l for the exploration and production sharing.
The new sharing agreement introduced recently by Libya, gives agreater percentage of the share to the NOC.
Signed by the Secretary of the management committee of the NOC Dr. Shokri Ghanem and the director of operations of R.W.E, Mr. Ralph Tobabin, the new oil deal makes provision for the foreign company to carry out seismic studies in three oil blocks in addition to the drilling of four prospecting wells during a period not exceeding five years.
The agreement states that R.W.E has share of 32 per cent to enable it recover its expenses, within a period not exceeding seven years, after which it will reduce its share to 14 per cent for the rest of the duration of the contract. The German company will also pay a premium of US$ 4 million for the signing of the contract within a deadline not exceeding 30 days from its adoption by the Libyan General Popular Committee.
