Libya: Light At End Of Tunnel As Losses Hit $7.5bn

20 Sep 2013 Issue: 56 / 38

Libya’s top oil officials are keen to put a positive gloss on the recent turmoil in the country’s energy sector, pointing to progress in restoring partial production and export capacity, and to new hydrocarbon regulation. A new bid round – scheduled for mid-2014 – will show whether IOCs are buying into the story.

The Libyan oil sector has been making plenty of headlines lately, but for the wrong reasons. Production last week slumped to a tenth of the post-Qadhafi high of 1.55mn b/d. Striking workers and security guards forced the closure of export terminals, refineries and field operations, while tribes have shut down pipelines.

But Libya’s state-owned National Oil Corporation (NOC) this week has gone on the PR offensive during the CWC Libya Forum held in Tripoli, with a string of good news and assurances. The conference was preceded by a report on state news agency Lana that an agreement had been reached with striking workers to resume production at the 340,000 b/d capacity Sharara and 130,000 b/d Elephant fields in the southwest of the country. Both fields are run with heavy foreign involvement. The Eni-NOC Mellitah joint venture operates the Elephant field, while Spain’s Repsol operates the Sharara along with foreign partners Total, OMV and Statoil. (CONTINUED - 1470 WORDS)