Shell has signed an agreement on a major gas exploration and development in Libya
International oil giant Royal Dutch/Shell has signed an agreement on a major gas exploration and development with Libyan state oil company. Shell intends now to rebuild investor trust after overstating its reserves.
The deal could provide more than 100 million barrels of oil equivalent for Shell.
Shell plans to spend $105-$450 million on upgrading a Libyan gas plant and $187 million on exploration.
As part of this latest deal, Shell has gained the right to explore for gas in five blocks covering 20,000 square kilometres at the heart of Libya's major oil and gas producing Sirte Basin.
Shell has also agreed to expand the LNG plant at Marsa al-Brega on the Libyan coast, to enable it to produce 3.2 million tonnes of LNG annually, up from the 0.7 million tonnes it currently produces.
