Libya's National Oil Corporation (NOC) and Rosneft of Russia have signed a Cooperation Framework Agreement that lays the groundwork for investment by Rosneft in Libya’s oil sector.
The agreement was signed in London by NOC chairman Mustafa Sanalla and Rosneft chairman Igor Sechin at the margins of London’s International Petroleum Week, a gathering that brings together oil industry participants from across Europe and the Middle East.
The agreement envisages the establishment of a Joint Working Committee of the two partners to evaluate opportunities in a variety of sectors, including exploration and production. Rosneft and NOC also signed a crude oil offtake agreement.
The accord represents a step forward in NOC’s plans, announced by chairman Mustafa Sanalla in London last month, to encourage investment by foreign oil companies in the expansion of Libya’s oil production to levels of 2.1 million barrels per day by 2022.
“We need the assistance and investment of major international oil companies to reach our production goals and stabilise our economy,” said Mr Sanalla. “This agreement with Russia’s largest oil company lays the foundations for us jointly to identify areas of cooperation. Working with NOC, Rosneft and Russia can play an important and constructive role in Libya.”