Total signed an agreement with NOC and the Government of Libya to include its participation in the Waha concessions. Credit: N.O.C.

The National Oil Corporation (NOC) board has approved Total’s acquisition of Marathon Oil Libya’s (MOLL) 16.33% interest in the Waha concessions in the Sirte Basin.

Waha Concessions is jointly owned by the NOC (59.18%), Total (16.33%), ConocoPhillips (16.33%) and Hess (8.16%).

To include its participation in the Waha concessions, Total has signed an agreement with NOC and the Libyan Government.

Under the agreement, Total will assist NOC by investing $650m towards the development of the Waha concessions and to increase production by 180,000boe/d through the North Gialo and NC 98 fields.

With an initial payment of $70m, Total will pay $30m when North Gialo becomes operational and another $30m when the NC98 project begins operations.

Total chairman and CEO Patrick Pouyanné said: “Total is satisfied to sign this agreement with NOC, with the agreement of the Government of Libya, which definitively endorses our entry into the Waha concessions.

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“We will engage resolutely with NOC and Waha Oil Company in order to invest, optimise the infrastructure and develop new reserves for the benefit of all parties and notably Libya and the Libyans.”

The company will further invest $20m over the next four years towards economic development programmes.

In March 2018, Total purchased a 16.33% working interest in the six Waha concessions by the purchase of MOLL.

Currently, the Waha concessions produce around 350,000boe/d.

NOC chairman Mustafa Sanalla said: “When Total announced the purchase of MOLL’s stake in the Waha concessions through the acquisition of MOLL for a price of $450m, NOC withheld its approval until it had the opportunity to scrutinise the deal in all its legal, contractual, financial, and investment aspects.

“In addition, NOC considered the feasibility of NOC or other Libyan entities acquiring that stake, versus what Total could bring to the concessions on a technical level and to the regions adjacent to them through social development. NOC also sought the government approvals necessary to complete the deal.”