Total has acquired Marathon Oil‘s 16.3% stake in Libya’s Waha concessions. This comes after Libya’s National Oil Corporation (NOC) approved the acquisition.
Total’s acquisition encompasses a $650 million investment that seeks to increase production by around 180,000 barrels per day. Additionally, NOC will also obtain $150 million from Total to support social responsibility and sustainable development programs in the areas adjacent to oil operations.
The company will engage resolutely with NOC and Waha Oil Company in order to invest, optimize the infrastructure and develop new reserves for the benefit of all parties.Total Chief Executive Officer, Patrick Pouyanne
According to NOC, Total will pay the funds for corporate social responsibility and sustainable development programmes and projects as non-refundable expenses. They will pay in phases relating to the development of the concessions.
Total will pay $70 million at the outset, $30 million after 21 days of continuous production in the North Gialo “6 J Area” project, another $30 million after 21 days of continuous production in the NC98 project. A further $20 million will be paid over the next four years.
The NOC has 59.18% of the Waha concessions, with Total and ConocoPhillips each holding 16.33%. Hess Corp. holds the remaining stake. The Waha concessions currently pump about 300,000 barrels a day.