Total Agrees Libyan Waha Basin Terms

Total and Libya's National Oil Corporation (NOC) signed December 16 an agreement to develop the onshore Waha concession in the Sirte Basin, the French major said. Mostly oil, the fields also contain some associated gas.

Under the agreement, Total is to provide its technology to assist NOC in developing the Waha concessions and developing the North Gialo and NC 98 fields, which are expected to add production of 180,000 barrels of oil equivalent (boe)/day.

Total will finance contributions of $70mn at the outset, $30mn when North Gialo comes on stream and $30mn when NC 98 comes on stream.

Total said the agreement "endorses our entry into the Waha concessions” and that it would "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."

Total acquired a 16.33% working interest in the six Waha concessions by the $450mn purchase of Marathon Oil Libya in March, 2018. The Waha concessions produce about 350,000 boe/d. The acquisition gives Total access to reserves and resources in excess of 500mn boe and "significant exploration potential across the 53,000 km² covered by the concessions," it said.

The NOC (59.18%), Total (16.33%), ConocoPhillips (16.33%) and Hess (8.16%) jointly own the Waha concessions. Waha Oil Company, wholly owned by NOC, operates the asset.