Who will get hold of Libya’s oil?
August 25th, 2011 - 7:30 pm ICT by IANSLondon, Aug 25 (IANS) As Libyan rebels continue to capture large portions of the country, the question being asked is which of the world’s biggest energy companies would get hold of Libya’s vast oil deposits if the rebel group comes to power.
Libya has more oil reserves than any other country in Africa with more than 40 billion barrels, says The Sun.
Oil giants, including BP, quit the country when the revolution started against long-time leader Muammar Gaddafi in February.
BP was reportedly just days away from drilling its first exploration well in Ghadames in the western region of the country.
The report said as the rebels start to draw up plans for their own government, oil and gas will be at the top of their agenda.
“And the vast reserves are at the top of the minds of energy giants around the world,” it said.
Philip Lambert, from Lambert Energy Advisory, said: “There are tens of billions of barrels still out there.”
And the crude is of the right kind — light and perfect for low-sulphur fuels desired in the modern world.
The country’s crude production was up to 1.6 million barrels a day when the uprising began. It has now shrunk to 60,000.
Libya opened up to foreign investment when sanctions were lifted in 2003.
Italian giant ENI “holds the trump card” in Libya, given the long-held ties between the Gaddafi regime and the country.
Spain’s Repsol is “another with a foot in the door”. But Russian and Chinese rivals including CNOOC are “licking their lips” at the riches in store, The sun said.
The coming weeks will be critical for British giant BP, it predicted.
The company was asked to leave when the industry was nationalised by Gaddafi in the 1970s. It returned in 2007 in what was termed “one of the most controversial moments” of then British prime minister Tony Blair’s tenure.
BP’s former chief executive Tony Hayward and Blair flew to Libya as the company was awarded the rights to explore 54,000 sq km for oil and gas.
Critics say BP must have been involved in talks to release Lockerbie bomber and Libyan national Abdelbaset Ali al-Megrahi back to Tripoli two years ago. BP, however, denies such claims.
Libyan rebel representative for reconstruction, Ahmed Jehani, has hinted that all existing deals would be honoured.
- Italy's oil giant Eni restarts production in Libya - Sep 26, 2011
- Oil hits $100 mark - Feb 24, 2011
- Italian oil giant strikes new deal with Libya - Aug 30, 2011
- Russia invites Libyan rebels to discuss projects - Sep 04, 2011
- Libyan rebels to negotiate with Russia on economic issues - Sep 05, 2011
- Libyan rebels seek financial help from Spain - Jul 22, 2011
- BP to begin deep-water drilling off coast of Libya - Jul 24, 2010
- I feel betrayed by Europe, especially Berlusconi: Gaddafi - Mar 16, 2011
- Spanish firm buys Russian oil company for $230 mn - Dec 30, 2011
- China urges Libya to protect its investments - Aug 24, 2011
- Italy seizes Gaddafi assets worth $1.4 bn - Mar 30, 2012
- Chinese-Spanish venture makes oil find in Brazil - Feb 28, 2012
- Gaddafi used Libya's vast oil reserves to buy allies in sub-Saharan Africa - Mar 16, 2011
- Libya ranks among world's largest sovereign wealth funds - Mar 03, 2011
- Gaddafi's son seeks friend Tony Blair's "diplomatic" assistance in 'crushing their enemies' - Feb 25, 2011
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