Shell, Libya in gas exploration deal

LONDON, May 3 (UPI) -- Energy titan Royal Dutch/Shell of London said Tuesday it has signed a long-term deal with Libya to do gas exploration and development in the country.

Shell said it will invest as much as $637 million in the deal with its partner the National Oil Corporation of the Great Socialist People's Libyan Arab Jamahiriya.

Shell will upgrade and rejuvenate the Marsa al-Brega liquefied natural gas plant on the Libyan coast, as well as explore five areas in the country's oil- and gas-rich Sirte Basin. The company will also, depending on gas availability, develop a new LNG facility in conjunction with NOC, Shell said.

"Libya's integrated gas industry has enormous potential, based on its large gas resources and favorable geographic location. I look forward to our cooperation and believe that this is the beginning of a new lasting and fruitful partnership with Libya," Malcolm Brinded, Shell's executive director for exploration and production, said in a statement.