Spanish-Argentine oil firm Repsol YPF SA (REP) Thursday said it has signed a contract with Libya's state-energy company National Oil Co., or NOC, to extend Repsol's oil concessions in the North African country through 2032.

In the deal, Repsol extends its production rights in the NC-115 and NC-186 blocks in Libya's Murzuq Basin until 2032. The two blocks at the end of last year had remaining proven reserves of 765 million barrels, Repsol said.

Repsol has a 40% operating stake in the NC-115 block, while France's Total SA (TOT) and Austria's OMV AG (OMVKY) each hold another 30%. Repsol has a 32% operating stake in the NC-186 block, with Total and OMV each holding another 24%, and Norway's StatoilHydro ASA (STO) holding 20%.

Repsol said the consortium of the four foreign firms will pay Libya $1 billion for the contract extension.

Repsol said it also has extended its exploration rights in the two blocks by another five years.
If more oil is found, the Repsol-led consortium and NOC will each invest $2 billion in order to boost production from the two blocks.

Libya plans to more than double output at the two blocks to 380,000 barrels a day, Repsol said. At the end of last year, Repsol's participation in output from the two blocks reached close to 53,000 barrels a day, a Repsol official said.

This year Repsol has started output at the I/R field in the NC-186 block, which it had discovered in 2006, it said, and it estimates the field to have a potential to produce 90,000 barrels a day.
At 1227 GMT, Repsol's shares in Madrid were up 0.2% at EUR21.57 in an overall higher market Thursday, up 2.7%.