Libya oil companies

National Oil Corporation

Not long ago, we heard of Libya's long drawn path to freedom. Remember Gaddafi and the civilian uprising in the country? The Arab spring, as it swept Libya unsparing the authoritarian Gaddafi regime, promised to have ushered in a new beginning. But eight years on, how is Libya? Well, the country is mercilessly split between East and West with sprouts of new conflicts every day. You may ask, why? Greed for power, you know. For starters, Libya sits on the largest oil reserve in the entire continent of Africa. Before the revolt, Libya was the third largest oil producer in the continent with 1. At present, the figures mark at about 1. Libya is a significant oil supplier to Europe too. Today various rivals are intensely fighting for oil control in Libya. As the backbone of its economy, oil has been at the core of unrest that followed Gaddafi's overthrow, a slow-burn conflict with periodic flare-ups of intense fighting. Unbeknownst to most, unlike other recent conflicts in the region, this one is not based on ideology or religion: it is purely about controlling Libyan oil. Needless to say, any conflict in Libya will shakeup the oil prices. As such, we'll look at the players, their backers and who stands to benefit. Hailing from tribal Bedouin origins, Muammar Gaddafi ascended to power in a military coup of As with many despots, Col. Gaddafi's rule started well enough. Much of the oil resources in Libya, during those times, were controlled by multinational oil companies. Naturally, the profits also went to those companies. Gaddafi, issuing ultimatums to those companies, succeeded in renegotiating contracts paving the way for Libya to glean revenue from its oil. So much so, with the nationalization of oil, Libya matched other Arab states in oil production. This far, so good. But aren't we talking of Gaddafi? Whenever he went abroad, he stayed in tents to, you know, show that he was still a humble man at heart. Was he? Far from it. Gradually, Gaddafi became an absolute dictator snubbing civil liberties, enacting despotic laws, funding terrorism in other countries and ruling Libya with a firm hand. In this respect, he was no different from the autocratic monarchs he once prophesied to despise. For decades, he was the absolute ruler of Libya. Tillhe remained undisputed. That begs the question, what kept him on for so long? Luck, providence or strategic maneuvering? Well, the truth is, Gaddafi was in power for so long because western powers backed him in exchange for securing oil. Ply him with expensive gifts and Gaddafi returned the gesture with oil contracts. So what happened? Well, the need for change arose with his increasingly unpredictable behavior. Had he been a mad man clinging to power by killing whoever opposed him or denying citizens even basic human rights, the world wouldn't have bated an eye.

UN Libya mission 'concerned' over threats to block oil exports

Military clashes followed by a political power struggle forced the National Oil Corporation NOC to halt exports at Ras Lanuf, Es Sider, Zueitina and Hariga terminals in late June and early July, threatening to keep offline as much asbarrels per day bpd. The ports were reopened on July 11 and eastern fields gradually resumed operations. A lengthy shutdown at El Feel oilfield in the southwest also ended, but two days later output at the nearbybpd Sharara was slashed after two staff were kidnapped. National production had been hovering around 1 million bpd for more than a year and reached 1. But the risk of further output shocks will linger while Libya remains politically and militarily divided. Libya has the largest proven reserves of oil in Africa, and has been a key light, sweet crude supplier. Around it produced more than 3 million bpd, and before the NATO-backed uprising in which Muammar Gaddafi was toppled and killed seven years ago, it was pumping more than 1. Last year the NOC outlined plans to raise production to 2. VI and U. N and Hess HES. N have production stakes through joint ventures with the NOC. Power is split between shifting armed factions in the east and west, aligned with competing administrations. Prolonged shutdowns have reduced pressure at wells. Groups including Islamist militants have attacked and fought over oilfields and ports. Most the storage tanks at two major terminals, Es Sider and Ras Lanuf, have been damaged or destroyed. Fields including Mabruk and Ghani remain closed. A lack of funding has been an additional drag on aging infrastructure and regular power outages are a further constraint. International companies have a limited presence onshore, keeping exploration and development programs mostly on hold. Reasons for shutdowns include economic protests by local groups pushing for cash or the release of jailed fighters, which have affected ports, major fields and parts of the pipeline network. Guards shut down the 70,bpd El Feel field this year for more than four months. Security is volatile. Militants including some linked to Islamic State are present in desert areas, and have carried out attacks near facilities or fields in the Sirte basin. The standoff was resolved with a promise to look into central bank spending and a sanctions threat against those trying to bypass the internationally recognized NOC. But the internationally recognized Government of National Accord GNA in Tripoli, which announced the investigation into spending, lacks authority. Meanwhile U. Both have signaled their intention to raise output. Discover Thomson Reuters. Directory of sites. United States. Business News. Aidan Lewis.

Everything You Need To Know About The Libyan Oil Industry

The call comes after Libya's national oil company warned against attempts to blockade ports ahead of the Berlin summit. The United Nations mission in Libya has express deep concern over efforts to disrupt oil production in the war-torn country and urged all sides to exercise restraint. Libya 's National Oil Company NOC had also warned on Friday against threats to block oil exports, saying it "strongly condemns calls to blockade oil ports ahead of the Berlin conference on Sunday". Turkey has backed the Tripoli-based GNA as it faces an offensive by Haftar's forces to seize the capital. After nine months of fighting, which has killed more than 2, people, a ceasefire came into effect on Sunday backed by both Ankara and Moscow, which is accused of supporting Haftar. However, after Turkey deployed troops to support the GNA, tribes close to Haftar threatened to close down the "oil crescent" - a string of export hubs along Libya's northeastern coast under Haftar's control since His troops have also mobilised to block any counterattack on the oil crescent, the conduit for the majority of Libya's crude exports. Commenting on the closures, the UN envoy to Libya said on Saturday he hoped but "could not predict" whether oil ports would be reopened in a few days. The head of the eastern Zouaya tribe told AFP news agency that blocking exports would "dry up the sources of funding for terrorism via oil revenues". NOC chairman Moustafa Sanalla said the oil and gas sector was "vital" for the Libyan economy, as it is the "single source of income for the Libyan people". They are not cards to be played to solve political matters," he added. Meanwhile, a port engineer and witnesses told Reuters news agency that protesters in eastern Libya entered the Zueitina oil terminal on Friday and announced its closure in response to the calls by tribal leaders. However, the Zueitina engineer said "the terminal is still receiving oil and a tanker entered it today". Scores of protesters reportedly erected a large tent outside the terminal. They read a statement saying they planned to shut all oil terminals in eastern Libya. Zueitina usually loads around 14 oil tankers per month and receives gas tankers, the port engineer said. Its oil sector, which brings in almost all of the state's revenues, has frequently been the target of attacks. Sanalla noted the consequences of exports and production being shut down for an extended period could be devastating. Haftar will come under pressure to end his campaign to take Tripoli at the summit in Berlin, which is aimed at ending foreign interference and division over Libya, according to the UN. The conference will seek to agree to six points including a permanent ceasefire, implementation of a much-violated UN arms embargo and a return to political efforts for peace, UN Secretary-General Antonio Guterres said last week. Toggle navigation. UN Libya mission 'concerned' over threats to block oil exports The call comes after Libya's national oil company warned against attempts to blockade ports ahead of the Berlin summit. More: En route to Berlin, Haftar holds talks with top Greek officials Haftar holds meetings in Greece ahead of Libya peace summit Erdogan: Turkey to start gas exploration in eastern Mediterranean Turkey has backed the Tripoli-based GNA as it faces an offensive by Haftar's forces to seize the capital.

U.S. Relations With Libya

The sectors under review are industry, telecom, banking sector, ICT, investments and more. Developed in conjunction with Ext-Joom. Top Oil Companies in Libya. Oil and Gas sector hydrocarbons have been dominating the Libyan economy and will continue to do so. According to the IMF report, "Oil and Gas sector hydrocarbons have dominated - and will continue to do so - the Libyan economy. Prior to the uprising that toppled the long term dictator the country was producing 1. The plan is to produce 3 million barrels of oil per day and cubic feed of gas a day. The government has also signed several EPSAs with international oil companies. Although these agreements were signed by the former regime, they remain in existence, and, according to multiple sources, will remain valid. The sector was impaired by the revolution and as a consequence, crude oil production fell to 22, barrels of oil per day in July Although, the production has been restored to the pre-war level, following the 30 years of the regime and the UN embargo the sector remains starved of much needed investment, technology and needs an complete upgrade. According to the Chairman of NOC, the largest oil company in Libya, "the country can produce oil at competitive production prices for another 50 years. Recently, the Libyan authorities have been working on a multi-billion dollar investment plan and a new round of licensing should begin within the next few years. The sector offers many investment opportunities, especially in the field of small to medium sized oil and gas service companies. The government's medium term goal is to build several refineries to satisfy the domestic demand for gasoline, that is currently imported from Italy. According to industry experts the sector employs about 47, people. Prior to the revolution, Libya attracted investment from international oil companies including Eni SpA, BP, ConocoPhillips, Total and Repsol as the country sought to raise production capacity to 3 million barrels a day. InLibya approved a While it is easy to distinguish the national players, the IOC are often locked in a convoluted ownership and concession schemes. Thus a clear structure of how many companies are operating in Libya is difficult to quantify. Aside from the domestic companies, Libya owns several international oil companies such as Tamoil, OilLibya. Agoco has upstream operations in eight oil fields, including Sarir, Messla, Nafoora, Beda and Hammada. The company also operates an oil terminal and a refinery in Tobruk and Sarir. Marathon Oil and ConocoPhillips each hold a The Libya Waha Group is the operator. The Concessions encompass almost 13 million gross acres in the Sirte Basin. This basin is one of the most prolific oil and natural gas producing areas of Libya, containing sizable undeveloped oil and natural gas resources. Estimated 2P net resource is 1. The Company manages several onshore fields spread across the country. It also manages offshore fields consist of three platforms and a floating tank. Moreover, it manages a network of onshore pipe lines of various sizes extended for thousands of kilometers. This offshore export Line is considered to be the first link between Libya and Europe. Occidental Petroleum Oxy began operations in Libya inand in made the first of several giant discoveries. Oxy was the first American company to resume oil operations in Libya after U. Additionally, Oxy participates in several on-shore exploration blocks.

Libyan Companies

Libya has attracted hydrocarbon exploration sincewhen the first wildcat oil well was drilled onshore in the Sirte Basin. Libya granted multiple concessions to EssoMobilTexas Gulf, and others, resulting in major oil discoveries by He eventually elaborated a new theory of the state in which all productive units and workplaces were to be directly governed by popular congresses. As part of his vision, the National Oil Corporation was established on 12 November In Julyfurther legislation made NOC responsible for marketing all domestic oil products. In the s Libya initiated a socialist style nationalization program under which the government either nationalized oil companies or became a participant in their concessions, production and transportation facilities. After commencement of the Arab-Israeli WarSaudi Arabia, Libya, and other Arab states proclaimed an embargo on oil exports to countries that supported Israel, primarily the United States. Although the oil crisis increased global demand, BP's legal position made some countries wary of importing from Libya. NOC compensated for this weakness by arranging barter deals with France and Argentina. Duringagreements reached with Exxon, Mobil, Elf Aquitaine and Agip provided production-sharing on an basis onshore, offshore. Eventually, all the foreign companies excluding BP agreed to partial nationalization, providing Libya with a substantial oil surplus. However, declining world oil prices resulted in NOC selling back its production shares. On 10 Marchthe U. Exxon and Mobil left their Libyan operations by January In Marchcontrols were expanded to prohibit exports to the Ras al-Enf petrochemical complex. The agreements included expenditure guarantees by the Libyan government, an important departure from earlier regulations, designed to help offset sanctions. The sanctions, imposed on 31 Marchinitially banned sales of equipment for refining and transporting oil, but excluded oil production equipment. Sanctions were expanded on 11 Novemberto include a freeze on Libya's overseas assets, excluding revenue from oil, natural gas, or agricultural products. Under these condition, NOC Chairman Abdallah al-Badri emphasized reducing new projects and upgrading domestic facilities. Republic of Korea and Lasmo. Foreign operators were encouraged to produce exclusively for export, limited to national oil companies with pre-sanctions equity in Libya. This policy was an attempt to contain the amount of crude offered on the spot market through third-party traders, and increase downstream investment. InNOC was reorganized by the General People's Congress after the Ministry of Energy was abolished, further consolidating control over the sector. Although U. State Department 's state sponsors of terrorism list. The US welcomed the move, but said it would maintain economic sanctions until it saw evidence of compliance. Lash announced that Libya had sent its first shipment of crude oil to the US since resumption of ties between the two countries. In Maythe U. Likewise, companies have tried using enhanced oil recovery EOR techniques to increase production at maturing fields. On 30 JanuaryLibya held its first round of oil and natural gas exploration leases since the US ended sanctions: 15 areas were offered for auctions. Winners of Libyan exploration area are determined based on how high a share of production a company is willing to offer NOC. Whichever company offers NOC the greatest share of profits is likely to win. Libya has substantial potential for exploration with an average of 16 wells per 10,km, whereas similar countries usually average 50 the world average is These include the Murzuq, Kufra and Cyrenaica Platform regions, as well as the deeper Palaeozoic plays in the semi-mature Ghadames and mature Sirte basins. In the Murzuq Basin, shows in oilwells in the early s, followed by discoveries of giant fields like Elephant inopened a vast, formerly condemned, marginal province. In Novemberthe group chairman, Mustafa Sanalla, announced the group is seeking to boost output tobarrels a day by the end of and about 1. NOC has a network of onshore oil, gas and product pipelines, crude oil export facilities and a gas pipeline. From Sicily, it flows to the Italian mainland, and then to the rest of Europe. Previously, natural gas exports were limited to LNG. NOC hopes to increase total oil production from 1.

Libya's oil company reports rise in October revenues

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