Total has added to its holdings in Libya, acquiring Marathon Oil Libya Ltd. which holds a 16.33% stake in the Waha Concessions in the North African country. This acquisition will give Total access to reserves and resources in excess of 500 million boe.
Not only does the acquisition add immediately to its reserves and resources but adds instant production to its totals out of Libya. According to the company, it will see an additional 50,000 boepd and significant exploration potential across the area of 53,000 sq km covered by the concessions in Libya’s prolific Sirte Basin.
Total paid a consideration of $450 million for Marathon Oil Libya.
The Marathon sale marks the second exit by a US company from Libya in the past two years. In late-2016 Occidental Petroleum Corp (OXY) sold a 7% stake in the Nafoura oilfield to Austria’s OMV.
“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,” said Patrick Pouyanné, chairman and CEO of Total. “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 currently produce around 300,000 boepd. Thanks to the ongoing restart of the existing installations and the resumption of development drilling, the output is expected to ramp up and exceed 400.000 boepd by the end of the decade.
Partners on the Waha concessions are now NOC, Total, ConocoPhillips, and Hess Corp. The concessions are operated by Waha Oil Company, a 100% NOC-owned entity.