• 4 minutes Ten Years of Plunging Solar Prices
  • 7 minutes Hydrogen Capable Natural Gas Turbines
  • 10 minutes World looks on in horror as Trump flails over pandemic despite claims US leads way
  • 13 minutes Large gas belt discovered in China
  • 9 hours Rioting and Protesting
  • 16 hours Trump waves a Bible
  • 3 hours George Floyd’s History
  • 3 hours The Downside of Political Correctness
  • 2 hours Coronavirus hype biggest political hoax in history
  • 18 hours Healing, Not Hatred
  • 5 hours US and Australia Sign SPR Lease Agreement
  • 7 hours Let's try to link the recent events back to the situation with oil production and pricing
  • 8 hours China To Boost Oil & Gas Exploration, As EU Prepares To Commit Suicide
  • 2 mins Main Stream Media falls into depressed mood today after hearing the record May jobs report UP 2.5 MILLION JOBS !
  • 5 hours China’s Oil Thirst Draws an Armada of Tankers
  • 18 hours Let’s Try This....
  • 15 hours Trumps Oil Industry....
  • 19 hours Chicago Threatens To Condemn - Possibly Demolish - Churches Defying Lockdown
  • 1 day China to Impose Dictatorship on Hong Kong
Unexpectedly Strong Jobs Report Sends Oil Soaring

Unexpectedly Strong Jobs Report Sends Oil Soaring

An unexpectedly strong jobs report…

China Leads The Global Oil Demand Recovery

China Leads The Global Oil Demand Recovery

Global oil demand has improved…

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