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Total buys 16.33% stake in Waha Concessions in Libya

EBR Staff Writer Published 02 March 2018

French oil and gas company Total has bought a 16.33% stake in the Waha Concessions in Libya through the acquisition of Marathon Oil Libya for $450m.

With the acquisition, Total will gain access to the reserves and resources which are expected to be more than 500 million barrels of oil equivalent.

Total chairman and CEO Patrick Pouyanné said: “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.

“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.”

The Waha Concessions is jointly owned by NOC with 59.18% stake, Total with 16.33%, ConocoPhillips with16.33% and Hess  with 8.16%.

The acquisition is expected to give Total an immediate production capacity of about 50 barrels of oil equivalent per day (boe/d). Besides, the stake acquisition will add a significant exploration potential of about 53km2 covered by the Concessions in the prolific Sirte Basin to the Total's portfolio.  

Currently, the Waha Concessions produces around 300 boe/d and with an ongoing restart of the existing installations and the resumption of the development drilling, the crude oil output is expected to increase and surpass more than 400 boe/d by the end of the decade.

Last month, an international consortium-led by Total including ENI and Novatek and the government of Lebanon signed two exploration and production agreements that cover the Blocks 4 and 9 located offshore Lebanon, in the eastern part of the Mediterranean Sea.

Under the terms of the agreements, the drilling of at least one well per block could be carried out in the first three years.

In the consortium Total and ENI hold a stake of 40% each, while Novatek holds the remaining 20% stake. Total stated that the priority of the consortium will be to drill a first exploration well on Block 4 next year.