• 4 minutes What will the future hold for nations dependent on high oil prices.
  • 7 minutes Paris Is Burning Over Climate Change Taxes -- Is America Next?
  • 12 minutes OPEC Cuts Deep to Save Cartel
  • 15 minutes Venezuela continues to sink in misery
  • 2 hours End of EV Subsidies?
  • 2 hours Maersk's COO statment.
  • 8 hours Citi cuts Apple's price target
  • 4 hours Japan Effectively Bans China’s Huawei, ZTE From Government Contracts, Joining U.S
  • 8 hours Asian stocks down
  • 6 hours USGS Announces Largest Continuous Oil Assessment in Texas and New Mexico
  • 2 hours GOODBYE FOREIGN OIL DEPENDENCE!!
  • 13 hours China Builds LNG Icebreaker
  • 4 hours Oil prices may go up, but will be below $70 a barrel in FY19: Hindustan Petroleum Chairman
  • 11 mins Trump accuses Google Of Hiding 'Fair Media' Coverage of him
  • 15 hours EPA To Roll Back Carbon Rule On New Coal Plants
  • 13 hours Price Decline in Chinese Solar Panels
Alt Text

Can Nigeria And Libya Avoid A Production Cut?

Nigeria and Libya were exempted…

Alt Text

A Storm Is Brewing In The Southern Gas Corridor

While Russia looks to circumvent…

Alt Text

Chevron, Exxon And Total On Niger Delta Hit List

A group of militant organizations…

Joao Peixe

Joao Peixe

Joao is a writer for Oilprice.com

More Info

Trending Discussions

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
-->