• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Starvation, horror in Venezuela
  • 1 hour Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 2 hours The EU Loses The Principles On Which It Was Built
  • 37 mins Crude Price going to $62.50
  • 6 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 10 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 11 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 11 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 6 hours Why hydrogen economics is does not work
  • 13 hours Monsanto hit by $289 Million for cancerous weedkiller
  • 19 hours WTI @ 69.33 headed for $70s - $80s end of August
  • 19 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 17 hours Saudi Aramco IPO Seems Unlikely
  • 3 hours < sigh > $90 Oil Is A Very Real Possibility
Alt Text

Nigeria’s Oil Strike Stokes Fear In Markets

A Nigerian oil workers union…

Alt Text

A Storm Is Brewing In The Southern Gas Corridor

While Russia looks to circumvent…

Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Trending Discussions

Marathon Rethinks Libya Exit

Marathon Rethinks Libya Exit

Amid the rising security chaos of Libya, Texas-based oil company Marathon Oil’s rumored plans to pull out of the country have been suspended for reasons that remain unclear.

Marathon had earlier considered selling its 16.3% stake in Libya’s Waha Oil Company, which is one of the country’s most significant joint ventures with a production capacity--when security allows—of some 350,000 barrels per day.

Last year, Shell pulled out of Libya and last month Exxon Mobil announced it would follow suit. The Libyan authorities, under increasing duress due to continual demonstrations of impotence in the face of roving militias, were hoping to avoid a third withdrawal of a high-profile supermajor.

Related article: Libya Prevents Marathon Oil from Selling its Assets

Some are speculating that Marathon is choosing to stay because it would be offered below market value for its stake on Waha. Libya’s National Oil Company owns a 59.2% stake.

Libya’s oil industry has all but ground to a halt. Some $5 billion has been lost in revenues since roving militias and strikers have blocked export terminals. Crude exports have fallen to under 250,000 bpd, compared with a capacity of 1.25 million bpd. This is only half of what output was just a month ago.  

The crisis began two years ago with the overthrow of Muammar Qaddafi, but in August things took a definitive turn for the worse, with armed groups seizing major oil export terminals and demanding autonomy for the eastern region.

Now the crisis has reached the west where other militant formations ominously charged with guarding the country’s pipelines and oil fields are seeking to profit on the momentum of the strikers and protesters in the east.

Related article: North African Downfall Spells Success for Morocco

Libya’s economy relies on oil for 95% of its export earnings, and right now it’s losing around $130 million day in revenues due to its inability to assert control over the situation.

Oil revenues provide about 75% of the government’s budget and in about six months this will run out, possibly leading to a complete breakdown in state institutions and public services.

By. Joao Peixe of Oilprice.com




Back to homepage

Trending Discussions


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News