As reported in The Globe and Mail, Petro-Canada signed a US$7-billion deal with the Libyan National Oil Company on energy production sharing in the North African country.  Under the agreements (which have a 30-year term), Petro-Canada will pay 50 per cent of development capital costs and receive a 12 per cent share of production.  Additionally, as the article notes:

“…Petro-Canada will pay a “signature bonus” of $1-billion in three stages, with the first payment due on ratification of detailed contracts, which is expected in 2008. The bonus includes $100-million US for social investments in Libya.

Petro-Canada estimates there are almost two billion barrels of oil associated with the redevelopment program, which includes pipeline and facility upgrades, development drilling and waterflood expansion.

Petro-Canada’s Libyan holdings currently produce about 100,000 barrels of oil per day. Under the new agreements, production is expected to double over the next five to seven years.

Petro-Canada also proposes to invest $460-million over the next seven years for an exploration program in Libya’s prolific Sirte region….”

Given this agreement and the number of other companies which have structured similar deals with Libya over the past month (including Occidental Petroleum Corp. of the U.S. Italy’s Eni SpA and Austria’s OMV AG), it is clear that Libya is back “on the map” for world hydrocarbon producers.