Today in Tripoli, as part of the working visit of the Russian Federation President Vladimir Putin to Libya, Alexey Miller, Chairman of the Gazprom Management Committee signed a Memorandum on Cooperation with the National Oil Corporation of Libya and a Memorandum of Understanding with the Libya Africa Portfolio for Investments.

Pursuant to the Memoranda, the parties will study the possibilities of implementing joint projects embracing oil and gas field exploration and development in Libya; gas processing, new gas liquefaction and oil refining capacity construction; natural gas fired power plant engineering and construction as well as cooperation in other energy sectors. Cooperation within each possible project, including potential establishment of joint ventures, will be regulated by an individual agreement.

The companies will also explore the possibilities of executing joint projects in third countries on the African continent. To implement the accords, the Libya Africa Portfolio for Investments and Gazprom are intent on setting up a joint venture.

Reference:

A key challenge facing Gazprom is access to new markets, expansion of the resource base and diversification of production capacities. While meeting these challenges, Gazprom is active in North Africa and primarily in Libya where the Company has set up a Tripoli based special purpose company Gazprom Libya.

Between 2006 and 2007 Gazprom obtained through bidding procedures the right to explore for and produce hydrocarbons at the licensed blocks 19 (Mediterranean offshore) and 64 (300 km south of Tripoli).

In December 2007, following the asset swap deal with BASF, Gazprom acquired a 49 per cent stake in Libya’s oil concessions C 96 and C 97 owned by Wintershall AG. These concessions are governed by the agreements effective till 2026. The concessions include nine fields with As Sarah as the largest. Current oil production is about 6 mtpa. Geological exploration is still in progress and work is underway to maintain the current production level at the concession C 96 and boosting production at C 97.

As part of its Strategic Cooperation Agreement with Italy’s ENI, Gazprom is negotiating the possibility of swapping assets, including assets in Libya.