Nippon Oil Unit Eager for Bigger Stake in Libya Oil Fields

Tokyo, Oct. 20 (Jiji Press)–Nippon Oil Exploration Ltd. is hoping to acquire a larger stake in Libya’s oil fields by participating in an upcoming international bid for concession rights expected to take place early next year, President Teruo Omori said in a recent interview.

The company, a resources development subsidiary of Nippon Oil Corp. , recently made successful bids for concession rights in two Libyan oil field blocks, becoming the first Japanese oil firm to acquire an oil field stake in the country.

Nippon Oil Exploration spent a sizable amount of money on the bids despite unfavorable terms of contracts, deeming it an “entry fee,” Omori said, stressing the importance of establishing a foothold in the unexplored Libyan market.

The company will decide whether to launch commercial production in the Libyan oil fields only after conducting test-drilling, estimating the size of the oil reserves, and analyzing oil price trends, he said.END