MOL Group signs production sharing agreement for exploration in Libya

MOL Group has signed a production sharing agreement with its joint venture partners, the Spanish company Repsol and the Turkish state-owned Türkiye Petrolleri (TPAO), for an offshore exploration area in the Mediterranean Sea, following the award of an exploration licence.

The agreement marks a key milestone in advancing exploration activities in Libya, while the project is expected to contribute to the revitalisation of the country’s oil and gas industry.

MOL Group entered the country earlier this year through a successful joint bid with its partners for an offshore exploration licence. Together with Repsol (40 per cent, operator) and TPAO (40 per cent), MOL Group (20 per cent) submitted a bid for the O7 offshore block and was awarded the right to conduct hydrocarbon exploration.

The O7 block covers more than 10,300 square kilometres in water depths exceeding 1,500 metres, located approximately 140 kilometres northwest of Benghazi. The minimum work commitment for Block O7 includes the acquisition of 1,500 kilometres of 2D and 2,300 square kilometres of 3D seismic data, as well as the drilling of one exploration well.

“Libya holds strategic importance for Europe and offers an exceptional offshore exploration opportunity in North Africa. We are committed to contributing our expertise to Libya’s economy, while also strengthening the energy security of Central and Eastern Europe through a new source,” said Zsombor Marton, Executive Vice President of MOL Group Exploration and Production.

Libya’s National Oil Corporation (NOC) has signed production-sharing agreements with several energy companies following the country’s first licensing round in nearly 20 years, Daily Sabah reported. Repsol and TPAO, along with Italy’s Eni and QatarEnergy, also secured exploration blocks.