BP PLC to Restart $2 Billion Oil Exploration in 2013

In the coming year, U.K’s oil giant, BP PLC, expects to begin its deep-sea drilling task off Libya’s coast as it resumes its $2 billion oil exploration program that was stopped by the ousting of Col. Moammar Gadhafi in the past year.

The major oil exploration company, which ended the freeze in its Libyan activities last May, will soon begin the initial work required before it starts drilling oil exploration wells, according to its spokesman. The real drilling will possibly begin anytime before the next year ends.

BP is choosing the contractors who will perform the underwater geological surveys, an invitation that can be found on the website of the Libyan National Oil Company.

As part of the agreement made in 2007, BP’s oil exploration will be in the frontier Sirt Basin, described by the company as having the same size of at least ten deep-water blocks located in Angola.

Under the contract made in 2007,  BP has already made an oil investment for 31,000 square kilometers of onshore and offshore 3D seismic data where it has acreage positions in Ghadames basin located in the western desert of Libya.

BP has placed additional oil investment as a central part of its strategy in an attempt to start a fresh course after the Deepwater Horizon disaster in 2010. Bob Dudley, the company’s chief executive, said that the company aims to drill about 25 new exploratory oil wells by next year with hopes that it will lead to more cash flow and permit more flexibility to return profits to shareholders.

The company’s stock keeps on trading at a significantly reduced price compared to industry peers such as Royal Dutch Shell PLC on concerns of huge fines coming from the Deepwater Horizon, the worst offshore crude oil spill in the history of the United States.