Repsol Targets Early 2013 to Resume Drilling for Oil in Libya -Tripoli Post http://goo.gl/fb/7yGln #libya
7:09 AM - 11 Nov 12 · Details
| Repsol Targets Early 2013 to Resume Drilling for Oil in Libya 11/11/2012 10:26:00 | ||
Spanish oil firm Repsol that has almost 1% of the total assets corresponding to exploration and production of hydrocarbons deployed in Libya, is making final preparations to resume drilling in Libya early next year.
Observers believe that this is an indication that the country is returning to normal after last year's conflict tht ousted from power after more than four decades, the dictatorial regime of Muamma Gaddafi. On Libya, the company currently has mining rights on nine blocks blocks of which seven, that make up a net surface area of 16,185 km2, are exploratory; two, that make up a net area of 1,566 km2 are in operation. In January of 2011, a few weeks before the start of the revolution, an exploratory discovery was made in Libya on block NC-115. But at the beginning of March 2011, due to the violent conflict, production came to a complete standstill. Following the resolution of the conflict, production was restarted on two blocks last month, and throughout 2012 Repsol is expected to reach production levels close to those recorded prior to the conflict. A Repsol executive on the sidelines of the North Africa Oil and Gas conference in the Austirean capital, Vienna, has been reported saying that the company has ordered a new drilling rig and will start drilling in the east Libyan desert as soon as that arrives, probably early next year. He added that production was now close to the 350,000 barrel per day it was pumping before the war. International oil firms, particularly from the US have been concerned about resuming operations in Libya, especially after the attack on the US Consulate in Benghazi that let to the death of former US Ambassador Chris Stevens and four other Americans. However, observers were surprised by the speed that Libyan oil workers have resumed work, at times even before the end of last year's conflict. According to the Chairman of Zueitina Oil company which works alongside US firm Occidental Petroleum Corp, Abdul Nasser Fituri Zammit, the slow return of companies could hamper the ability of Africa’s third largest oil producer to raise future output, Reuters reported. He added: “Some of them have lifted their force majeures but when it comes to actual work we have heard nothing.” He added that the absence of construction and oil services companies was slowing down projects. Libyan oil executives are hoping the Repsol decision as well as a commitment by BP to resume exploration will encourage others to return. A source in the Libyan oil ministry reportedly told Reuters that exploration is still much less than before war, and hoped that the companies will be back early next year. |
