AMSTERDAM, Netherlands (AP) -- Royal Dutch Shell said Monday it has begun explorations in Libya for natural gas and expects to start drilling in 2007.

Seismic operations began last week in the Sirte Basin by BGP International Libya, Inc., and contracts have been awarded to three more companies to explore other blocks.

Shell concluded a deal in May to explore and develop five areas in the Sirte Basin at the heart of Libya's major oil and gas producing covering a total of some 20,000 square kilometers (7,700 sq. miles).

It also is to upgrade the existing liquefied natural gas plant at Marsa Al-Brega on the Libyan coast. The company said the project will be one of the largest seismic operations for the Shell group in 2006.

"This marks the start of activities on the ground for this major integrated gas exploration and production project and the beginning of a long-term strategic partnership with Libya," Matthias Bichsel, Shell's executive vice president for exploration, said in a statement.

The other companies awarded contracts are PGS Exploration Ltd., WesternGeco Overseas Ltd. and Veritas DGC Ltd., the statement said.

Shell's return to Libya -- where it was active from the 1950s until 1974 and where it conducted exploration in the late 1980s -- has been aided by the country's improved ties with the West following its announcement in December 2003 that it would dismantle its chemical, nuclear and biological programs.

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