Hungary’s MOL Group has signed a production sharing agreement with its joint venture partners Repsol and Turkish Petroleum Corporation (TPAO) for an offshore exploration area in the Mediterranean Sea.
The agreement follows the recent award of an offshore exploration licence to the consortium after a successful joint bidding process.
Under the terms of the joint bid, Repsol holds a 40 per cent operating interest, while TPAO and MOL Group hold 40 per cent and 20 per cent interests, respectively, in the offshore O7 block.
Located approximately 140 kilometres northwest of Benghazi, the block covers more than 10,300 square kilometres in water depths exceeding 1,500 metres.
The minimum work commitment for this deepwater block includes the acquisition of 1,500 square kilometres of two-dimensional and 2,300 square kilometres of three-dimensional seismic data. This commitment also mandates the drilling of one exploration well to assess the hydrocarbon potential of the area.
Executive Vice President of MOL Group Exploration and Production Zsombor Marton stated that the agreement marks a milestone in the revitalisation of the oil and gas industry in Libya. He added that the region provides "an exceptional offshore exploration opportunity in North Africa".