• 3 minutes Nucelar Deal Is Dead? Iran Distances Itself Further From ND, Alarming Russia And France
  • 5 minutes Don Jr. Tweets name Ukraine Whistleblower, Eric Ciaramella. Worked for CIA during Obama Administration, Hold over to Trump National Security Counsel under Gen McCallister, more . . . .
  • 9 minutes Shale pioneer Chesepeak will file bankruptcy soon. FINALLY ! The consolidation begins
  • 12 minutes China's Blueprint For Global Power
  • 13 hours Science: Only correct if it fits the popular narrative
  • 6 hours Crazy Stories From Round The World
  • 17 mins EU has already lost the Trump vs. EU Trade War
  • 16 hours Iran Burning: Shock Gas Price Hike Triggers Violent Protests After Subsidy Cuts
  • 5 hours Impeachment Nonsense
  • 1 day Do The World's Energy Policies Make Sense?
  • 7 hours Everything You Need To Know About Trump
  • 1 day What are the odds of 4 U.S. politicians all having children working for Ukraine Gas Companies?
  • 2 days China's Renewables Boom Hits the Wall
  • 16 hours Atty General Barr likely subpeona so called whistleblower and "leaker" Eric Ciaramella
  • 2 days Forget out-of-date 'dirty oil' smear, Alberta moving to be world's cleanest oil industry
  • 2 days Water, Trump, and Israel’s National Security
  • 1 day Who writes this stuff? "Crude Prices Swing Between Gains, Losses"

Breaking News:

Russia Plans To Boost Crude Oil Exports

Alt Text

New Offensive Brings Libya To The Brink Of War

Forces loyal to Libya’s eastern…

Alt Text

President Of African Oil Producer Sudan Toppled In Military Coup

Omar al-Bashir, long-term President of…

Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Premium Content

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




Download The Free Oilprice App Today

Back to homepage



Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play