PT Pertamina of Indonesia, BG Group Plc of the U.K., Oil India Ltd. and Indian Oil Corp. won permits to search for oil and gas in Libya in an auction in which dozens of companies submitted bids for exploration rights in a country that holds Africa's largest crude-oil reserves.
Nippon Oil Corp. of Japan and China National Petroleum Corp. won permits to search offshore.
Libya's government awarded the rights in an auction held today in Tripoli. At least 49 companies registered to bid for permits in 26 onshore and offshore plots, covering about 100,000 square kilometers (38,600 square miles), nearly the size of Cuba. The companies will have to share the production of any field they discover with the Libyan government.
Libya, the eighth-largest oil producer of the 11-member Organization of Petroleum Exporting Countries, is seeking to attract $30 billion of investment to raise production this decade to 3 million barrels a day, from 1.7 million now.
It held the first auction for exploration rights in January 2005. Until then, the nation awarded blocks after talks with companies. The auction today is the second held by Libya since oil was first discovered in the country in 1959.
Libya, a country slightly larger than Alaska, has proven crude-oil reserves of 39 billion barrels, equivalent to more than five years of U.S. consumption. Libyan Energy Secretary Fathi Ben Shatwan told Bloomberg on Sept. 19 that potential reserves may top 100 billion barrels as only 30 percent of the territory is covered by agreements with oil companies.
Occidental Petroleum Corp, Chevron and Amerada Hess Corp. won alone or with others 11 of the 15 permits auctioned, in the first bidding round since oil was discovered in Libya 46 years ago. Until then, the nation awarded blocks after talks with companies.
