Ahmad Ghaddar, Ron Bousso
Italy’s Eni has agreed to buy half of BP’s 85 percent stake in a Libyan oil and gas license with the aim of resuming exploration next year, the companies said on Monday.
Eni will acquire the 42.5 percent stake and become the operator of the exploration and production sharing agreement (EPSA) in Libya, in which the Libyan Investment Authority holds the remaining 15 percent, the companies said in a statement.
The companies, along with state-owned National Oil Corp (NOC), signed a letter of intent in London on Monday paving the way for the final deal. They did not disclose financial terms of the transaction.
NOC chairman Mustafa Sanalla said the agreement showed renewed confidence in the war-torn country’s oil and gas sector.
“This agreement is a clear signal and recognition by the market of the opportunities Libya has to offer and will only serve to strengthen our production outlook,” he said.
BP Chief Executive Officer Bob Dudley hailed the deal as an important step “towards returning to our work in Libya”.
