After a 19-year absence, the Oasis Group partners, Amerada Hess Corp., (NYSE: AHC) ConocoPhillips (NYSE: COP) and Marathon Oil (NYSE MRO)have reached an agreement with the Libyan National Oil Corp. on the terms under which it will return to its former oil and gas production operations in the Waha concessions in Libya. The Waha concessions encompass about 13 million acres in the Sirte Basin. The Libyan National Oil Corp. will hold a 59.16% interest, ConocoPhillips and Marathon Oil will each hold 16.33%, and Amerada Hess will hold an 8.16% interest. Amerada Hess will add in excess of 85 million barrels of oil equivalent (BOE) to the company's proved reserves as a result of the reentry to Libya, and up to 25,000 net barrels per day of production. ConocoPhillips expects to add almost 45,000 net barrels of oil per day to its production profile. Marathon anticipates adding more than 160 million BOE and up to 45,000 net barrels per day of production during 2006. The reentry terms include a 25-year extension of the concessions to 2031-34 and a payment to the Libyan National Oil Corp. of US$1.3 billion for reentry and the extension of the concessions. The companies will also make a contribution to unamortized investments made since 1986 of US$530 million that were agreed to be paid as part of the 1986 standstill agreement to hold the assets in escrow for the U.S. partners.

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