Libya

In January 2005, Oil Search, in conjunction with its joint venture partner Petrobras of Brazil, was succesful in bidding for an interest in Area 18, offshore Libya.  The award was ratified in early April 2005.  Oil Search's interest in Area 18 is 30%, with the operator Petrobras holding the remaining 70%.  Initial work commitments included the acquisition of 2,000 kilometres of 2-D seismic and 500 square kilometres of 3-D seismic, plus the drilling of one exploration well.  During 2005,existing 2D seismic was re-processed and a seismic acquisition programme took place in 2006. An exploration well is expected to be drilled in late 2008/early 2009.  Water depths in the licence range from 300 - 700 metres.