Libya: IOCs Look To The Exits As Instability Hits Their Bottom Line

8 Nov 2013 Issue: 56 / 45

Q3 earnings statements for firms active in Libya show production outages denting their bottom line. BP is the latest IOC to plan to exit or reduce its interest.

Italy’s Eni last week said it expects its 2013 oil and gas output to decline, after third quarter production dropped by 4% to 1.65mn barrels a day of oil equivalent (boe/d) on disruptions in Libya and Nigeria. Eni’s key Libyan oil fields are Elephant (Feel) in the southwest and the Bouri offshore field. It is presently forgoing more than 120,000 b/d in lost crude output, according to its chief operating officer for exploration and production, Claudio Descalzi.

Mr Descalzi expects current production in Libya of around 135,000 b/d to remain in place for the coming two quarters, down from the company’s maximum output of 280,000 b/d. Gas production has been less affected with exports to Italy via the Greenstream pipeline – currently 330 mn cfd – and supplies of around 250mn cfd to the domestic market continuing. (CONTINUED - 1043 WORDS)