Libyan Oil Auction Lures Exxon, BP, Dozens of Bidders

Exxon Mobil Corp., BP Plc and Chevron Corp. are among at least 49 companies that registered to bid today for exploration rights in Libya, as the north African country steps up efforts to develop Africa"s largest crude-oil reserves. National Oil Corp., Libya"s state-owned energy company, issued badges today for representatives of 49 companies to attend the country"s second auction since oil was discovered in 1959, at 5 p.m. local time in Tripoli. Libya will offer permits to search for oil and gas in 26 onshore and offshore plots covering about 100,000 square kilometers (38,600 square miles), nearly the size of Cuba. The government of Muammar Qaddafi, Libya"s leader since 1969, seeks to attract $30 billion of investment to raise production this decade to 3 million barrels a day, from 1.7 million now. Libya is the eighth-largest oil producer of the 11-member Organization of Petroleum Exporting Countries. Nineteen of the plots offered are in areas already producing oil such as Sirte, in the center of the country; Ghadames, in the west; and Murzuq, in the south-west. The others are in Cyrenaica and Kufra, in the east. The auction comes amid surging oil prices. Rising demand worldwide pushed crude-oil prices to a record of more than $70 a barrel on Aug. 30.