Uncertain future for Libyan Oil contracts - Reuters.
In an analysis Reuters highlights the uncertainty for some international oil and gas exploration companies (IOCs) over their pre revolution NOC contracts with the NTC goverment.
Source : https://www.marocafrik.com/english/Uncertain-futur...
Libya has always been a difficult environment for IOCs, the country has the largest oil reserves in Africa but for years US sanctions prevented a number of oil companies from entering the market and the Americans themselves as the Oasis group was expelled and were only allowed back in 2004 after Gaddafi surrendered his weapons of mass destruction.
Have got back in folowing the revolution some companies are finding that they may have to submit to a renegotiation process as their contracts with NOC were agreed under Gaddafi's rule ande a commission is looking into corruption allegations.An election is coming up in June so it is unlikely that firm agreements will be reached by then. Conflicting government statements have added to the confusion.
EPSA agreements with NOC often involved the revision of agreements and such negotiations go with the territory for most IOCs in North Africa.They know that whilst NOC is likely to demand an increased share of production they will be unlikely to terminate working agreements. That having been said frutration was expressed at the recent Libyan oil and gas conference in Rome and some said that IOCs could not wait forever to renew their contracts especially as other African countries now have significant new oil discoveries coming on stream.
Libya has always attracted interest becuase of its great potential but realising the potential is a long term business and deficiencies in infrastructure and adminsistration have always created problems,the uncertain security situation adds to this and if the security deteriorates this could put back operations further.
As with Algeria, Libya has significant oil and gas reserves which are close to Europe and this will always remain an important factor for IOCS. However any idea that things would get easier after the fall of Gaddafi has had to be dispensed with.
Have got back in folowing the revolution some companies are finding that they may have to submit to a renegotiation process as their contracts with NOC were agreed under Gaddafi's rule ande a commission is looking into corruption allegations.An election is coming up in June so it is unlikely that firm agreements will be reached by then. Conflicting government statements have added to the confusion.
EPSA agreements with NOC often involved the revision of agreements and such negotiations go with the territory for most IOCs in North Africa.They know that whilst NOC is likely to demand an increased share of production they will be unlikely to terminate working agreements. That having been said frutration was expressed at the recent Libyan oil and gas conference in Rome and some said that IOCs could not wait forever to renew their contracts especially as other African countries now have significant new oil discoveries coming on stream.
Libya has always attracted interest becuase of its great potential but realising the potential is a long term business and deficiencies in infrastructure and adminsistration have always created problems,the uncertain security situation adds to this and if the security deteriorates this could put back operations further.
As with Algeria, Libya has significant oil and gas reserves which are close to Europe and this will always remain an important factor for IOCS. However any idea that things would get easier after the fall of Gaddafi has had to be dispensed with.
Source : https://www.marocafrik.com/english/Uncertain-futur...