Taiwan oil firm to drill in Libya

Oct 17, 2006, 0:59 GMT

Taipei - Taiwan's Chinese Petroleum Corp (CPC) is seeking to drill for oil in Libya and is considering an investment to build a petrochemical industrial park in Libya, a newspaper said Tuesday.

The Economic Daily News (EDN) said that the state-run CPC is among 47 international oil firms that have qualified to submit bids to drill in Libya.

CPC will submit bids for one to three blocks before December 20. The exploration and contract fee for each block is 4.2 million-5.2 million US dollars, the daily said.

On September 28, Libya's National Oil Corp (NOC) qualified 47 international oil firms to submit bid to drill for oil in 41 blocks in Libya, which has Africa's largest petroleum reserves.

Taiwan's CPC, China's CNPC and SINOPEC, Japan's Mitsubishi Corp, Itochu Corp and Japan Petroleum Exploration Co Ltd and Oil India are the only Asian firms that have been allowed to bid.

Other qualified participants include ExxonMobil, Chevron, Shell, Lukoil, Gaz de France, Gazprom and Petro Canada Ventures.

Meanwhile, the Libyan government has invited CPC to invest in a petrochemical zone in Libya, and CPC will make a feasibility study, EDN quoted an unnamed CPC official as saying.

CPC has been seeking to foreign oil exploration opportunities, and Libya has become a new destination as Taipei-Tripoli ties have warmed since Libyan leader Moamar Gaddafi's son Saif Gaddafi visited Taiwan in January to launch unofficial ties with Taipei.

President Chen Shui-bian made a secret visit in May to Libya and reportedly met with Moamar Gaddafi to discuss cooperation in the absence of formal ties.