Libya: From Oil & Gas Journal Online, August 30
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One upstream market that Houston-based Conoco hopes to re-enter soon is Libya. Conoco had a 40% interest in the old Oasis group of US producers, including Marathon Oil Co. and Amerada Hess, that were operating in Libya before 1986 when the US government imposed a raft of trade sanctions that forced their withdrawal.
Libya's National Oil Co. has since changed the Oasis name to Waha Oil Co. and taken over operation of those oil fields, marketing the US companies' share of production on its own account. "But we kept the right to come back and re-enter the country once the political dispute is settled," said Rob McKee III, executive vice-president of exploration and production.
He thinks a political reconciliation may come soon, now that Libya has met some of the US demands by turning over suspected terrorists for trial in an international court. The move toward normalizing US relations with Libya is on track, regardless of who is elected president this fall, he said.
Conoco officials have since been back to Libya, with the US government's blessing, to look at those properties and to talk with Libyan officials about eventually resuming operations there. "One team returned about a week ago," McKee said.
The former Oasis fields are still producing about 300,000 b/d, with the possibility of being increased to more than 400,000 b/d, he said. "They need our expertise and our investment," said McKee.
International oil companies voted Libya as their top choice area for new exploration, development, and production ventures this year in a recent survey by Robertson Research International Ltd. (OGJ Online, May 24, 2000). The changing political environment and prospects for world-class production plays vaulted Libya to the top spot from 20th position in Robertson's previous survey in 1998. |
