National Oil Corp., BP PLC and Eni S.p.A. said Oct. 8 they have agreed to work towards Eni acquiring 42.5% interest in the BP-operated exploration and production sharing agreement in Libya.

The sharing agreement includes three contract areas, two in the onshore Ghadames basin and one in the offshore Sirt basin, covering a total area of around 54,000 square kilometers.

BP currently holds an 85% working interest in the contract areas, with the Libyan Investment Authority holding the remaining 15%.

Upon completion, Eni would become the operator for the projects, with existing exploration and production activities and infrastructure adjacent to onshore areas of those in the sharing agreement creating an opportunity for the resumption of activity in the contract areas where work has been suspended since 2014.

As part of the letter of intent, the companies reconfirmed their commitment to promote technical training and other social initiatives in Libya.

The deal is expected to close by year's end, with a target of resuming exploration activities in 2019.