Swings and roundabouts

In some ways, Libya's new model exploration and production-sharing agreement compares favourably with many other production-sharing regimes. But stipulations in some areas, such as those covering local-content requirements and the methodology for determining elements of the profit split, may worry private investors. Nabil Khodadad, Shane DeBeer and Dan Rogers, Chadbourne & Parke, analyse a draft of Epsa-4

LIBYAN National Oil Company (NOC) attracted significant interest from foreign oil companies when it said eight exploration blocks would be offered for bidding this summer. With its high-quality sweet crudes, low operating costs ($1-5 a barrel) and the recent easing of sanctions, there are few doubts about the country's attractiveness as an upstream play. The focus has, however, switched to the terms under which exploration and production (E&P) will be conducted. Eight blocks on offer The eight blocks are being offered on a single-bid basis per agreement and are in the Ghadames, Cyrenaica/Botnan, Murzuq and Sirte basins, as well as offshore, in the Mediterranean. A minimum exploration and