Sonatrach to resume Libya operations next week

Sonatrach, like most foreign energy companies, pulled its staff out during last year's rebellion against Muammar Gaddafi.

Although the company does not produce oil or gas in the country, it has exploration rights in the Ghadames basin, near the border between Libya and Algeria.

International Oil Companies are returning to  Libya although some of them face potential uncertainty over contracts negotiated by the previous regime and theer are concerns about security because of continued militia and tribal clashes The National Oil Company (NOC) has confirmed  that oil production has returned to close to the pre revolution level of 1.6 million barrels per day (bpd). Abdurrahman bin Yeaza Libyan Minister for Oil and Gas confirmed last month that production had reached 1.5 million bpd.

The return of Sonatrach is seen as a further sign of improved relations between Algeria and Libya following a series of visits and meetings climaxing with  the visit to Algeria last week of Mustafa Abdel Jalil chairman of the National Transitional Council (NTC) when he met with President Abdelaziz Bouteflika and they reaffirmed their relationship which has dramatically improved since an earlier controversy over Algeria's granting asylum to members of the former Libyan Leader's family. Algeria's  legislative elections are due on 10 May and Libya is aiming to hold elections in June.