CPC, Libya’s NOC agree on business deal

[tolibya]

Taiwan's Chinese Petroleum Corp. and the Libyan National Oil Co. agreed on a business deal focused on oil production-sharing and exploration deal to tap a Libyan field.

Taiwan's Central News Agency reported Tuesday that an agreement was brokered between the two sides in Libya Monday. Taiwan was represented by CPC Chairman Pan Wen-yen.

CPC officials say the agreement will help Taiwan establish a bridgehead for oil exploration in North Africa, CNA reported.

CPC won a bid to explore the Murzuq 162 oil field in southern Libya last December, and CNA reported that the company would invest $34 million over the next three years to conduct work on three exploratory wells and start extraction.

The news agency said the field could yield 500 million barrels of oil.
Under Monday's deal, development and production will resume only when oil is found.

The Oil and Gas Journal says Libya had total proven oil reserves of 39 billion barrels at the end of 2005, but much of the country is still unexplored.