• 2 days Shell Oil Trading Head Steps Down After 29 Years
  • 2 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 2 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 3 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 3 days Venezuela Officially In Default
  • 3 days Iran Prepares To Export LNG To Boost Trade Relations
  • 3 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 3 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 3 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 3 days Rosneft Announces Completion Of World’s Longest Well
  • 4 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 4 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 4 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 4 days Santos Admits It Rejected $7.2B Takeover Bid
  • 4 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 4 days Africa’s Richest Woman Fired From Sonangol
  • 4 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 5 days Russian Hackers Target British Energy Industry
  • 5 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 5 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 5 days Lower Oil Prices Benefit European Refiners
  • 5 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 5 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 6 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 6 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 6 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 6 days OPEC To Recruit New Members To Fight Market Imbalance
  • 6 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 6 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 6 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 6 days GE Considers Selling Baker Hughes Assets
  • 6 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 7 days Saudi Aramco To Invest $300 Billion In Upstream Projects
  • 7 days Aramco To List Shares In Hong Kong ‘For Sure’
  • 7 days BP CEO Sees Venezuela As Oil’s Wildcard
  • 7 days Iran Denies Involvement In Bahrain Oil Pipeline Blast
  • 9 days The Oil Rig Drilling 10 Miles Under The Sea
  • 9 days Baghdad Agrees To Ship Kirkuk Oil To Iran
  • 9 days Another Group Joins Niger Delta Avengers’ Ceasefire Boycott
  • 10 days Italy Looks To Phase Out Coal-Fired Electricity By 2025
5 Of The Hottest Mining Stocks For 2018

5 Of The Hottest Mining Stocks For 2018

The electric car boom has…

Oil Tycoon Hamm Slams EIA’s Overoptimistic Shale Forecasts

Oil Tycoon Hamm Slams EIA’s Overoptimistic Shale Forecasts

Shale billionaire and chief executive…

Libya is Improving Contract Terms to Attract more Foreign Oil Companies

Libya is Improving Contract Terms to Attract more Foreign Oil Companies

In 1970 Libya produced 3.3 million barrels of crude oil a day, but since then output has fallen massively, mainly as a result of US sanctions levied against the country due to accusations that Qaddafi was supporting terrorists. The highest production volume in recent years was 1.8 million barrels a day in 2008, and currently it is down to just 200,000 – 240,000 barrels a day.

In 2004 the US lifted the sanctions, and in an attempt to greatly boost output Libya has held a number of exploration auctions, trying to attract foreign investment and force further exploration and development of crude oil resources. Between 2005 and 2007 nearly 30 companies (including Eni SpA, Royal Dutch Shell Plc, Exxon Mobil Corp., Repsol SA,Total SA, and OAO Gazprom) have won exploration and production licenses from four different auctions.

Recent protests in Libya’s oil industry risk to deter any foreign oil companies from bidding in the auction, so as an extra incentive the government is reassessing the terms it offers. The next auction is planned for next year, and will be first since the removal of Qaddafi in 2011.

Related Article: More to Oil Markets than Libya and Syria

Nuri Berruien, the chairman of state-owned National Oil Corp., explained that “the conditions are under review so as to improve relations with the companies in a win-win context and promote long-term investments.”

Previously terms offered where only just competitive, but now Riccardo Fabiani, a North Africa analyst with Eurasia Group, has explained that “the international oil companies were attracted mostly to the fact that Libya was relatively under-explored after decades of international sanctions and isolation, and therefore the potential was considered high.”

Najmi Karim, the chairman of Libya’s petroleum law review committee, stated that they “will seek to reward risk,” by offering better terms to companies exploring in more remote and dangerous areas.

On Monday the government managed to negotiate an end to the strikes at the Sharara and El Feel fields increasing Libya’s oil production by 400,000 a day.

By. Joao Peixe of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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