OMV Restarts Production; Increases Stakes in Libyan Fields

Austria's OMV has announced that, as a result of the improvement in the political and security situation in Libya, it has successfully started up production at both the Sirte and Sharara oil fields. The Sharara fields are located in the Murzuq basin. In Q4/2016 OMV’s production from Libya amounted to approximately 3,000 bbl/d.

OMV also increased its stake in four Exploration and Production Sharing Agreements (EPSAs) in the Sirte Basin. OMV acquired 75% of the Second Party Share and now holds 100% of the Second Party shareholding in blocks C103, NC29/74, C102 and Nafoora Augila. The state-owned Libyan National Oil Corporation (NOC) holds the First Party Share and will remain the majority shareholder with a working interest of 88 to 90%.

[Or as the NOC announcement put it: "OMV has taken over Oxy’s [Occidental Petroleum] 75% share of the second party share of both ZOC and Nafora Augila unit Area 91 at AGOCO, giving it 100% of the second party share in both developments. The first party share in both cases, representing a working interest of 88-90%, is held by NOC."]

OMV’s Libyan production is expected to reach 10,000 bbl/d on average in 2017. Subject to ongoing improvements in the security situation, the above transaction will provide OMV with an opportunity to increase its production in Libya to a maximum of 50,000 bbl/d.

OMV has been a trustful partner to NOC throughout challenging times and remains fully committed to invest in Libya in the future”, said Rainer Seele, CEO and Chairman of the OMV Executive Board after meeting with NOC Chairman Mustafa Sanalla in Tripoli.

(Sources: OMV, National Oil Corporation - NOC)

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