Libya NOC Reviewing US Oil Company Concessions
By Dyala Sabbagh
DUBAI, March 26 (Dow Jones) - The Libyan National Oil Corporation has informed the former Oasis Oil Company of Libya group, comprising Conoco Inc. (COCA), Marathon Oil (T.M) and Amerada Hess (AHC), which ceased operations in June 1986, that it is reviewing the status of its concessions in the country, the Middle East Economic Survey reported Monday, citing sources.
NOC has asked the U.S. companies to specify when they will resume operations and is considering opening up some of the participation areas originally held by the consortium to other, mainly European, companies, MEES said.
In January 1986, the U.S. placed sanctions on Libya, forbidding U.S. companies to operate in the country. President Clinton extended these sanctions for another six months in January of this year.
NOC and the U.S. group of companies signed a standstill agreement in June 1986 under which NOC assumed responsibility for operating and maintaining the oil fields until the Oasis group is able to resume operations.
According to MEES sources, the new Bush administration has rejected oil company requests to review sanctions and instead will allow the 1996 Iran-Libya sanctions Act, or ILSA, to be rolled over in a modified form when it expires in August.
MEES said the new legislation will emphasize the two major U.S. concerns: that Libya accept full responsibility for the Lockerbie bombing and that it compensate the families of the victims accordingly.
While negotiations on this are taking place between U.S., UK and Libyan ambassadors at the U.N., these issues aren't expected to be resolved before the August deadline and the results of the appeal process on the Lockerbie judgment by the Scottish tribunal, MEES said.
MEES sources said the modified ILSA legislation will be divided into two parts: one dealing with Libya and the other with Iran. Sanctions on Iran are expected to remain unchanged, MEES said.
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U.S. Expected to Renew Sanctions on Libya
NICOSIA, March 26 (Reuters) - Washington has spurned oil firm requests to review sanctions on Libya and will roll over the 1996 Iran-Libya Sanctions Act in a modified form upon its August expiry, the Middle East Economic Survey said on Monday.
News of the likely renewal of unilateral sanctions comes as the Libyan National Oil Corp (NOC) has informed the former Oasis Oil Co of Libya group (Conoco, Marathon and Amerada Hess) that it is reviewing the status of their concessions, MEES reported.
The companies ceased operations in Libya in June 1986 and NOC wants the U.S. firms to clarify when they will be able to resume operations.
NOC has made it clear to the U.S. companies that it is considering opening up some of the unexplored parts of their permits to international - mainly European - oil companies, the newsletter said.
MEES said the U.S. firms are keen to continue long-running negotiations, which have taken place in Europe, with a view to reaching a new arrangement beneficial to both parties' long-term interests.
NOC and the U.S. companies signed a standstill agreement in June 1986 under which NOC assumed responsibility for operating and maintaining the oilfields held by the former Oasis group until the companies were able to resume operations in Libya.
The proposed new ILSA legislation will emphasize the two major U.S. concerns - that Libya should accept full responsibility for the Lockerbie bombing and should compensate the families of the victims accordingly, MEES reported.
Talks are ongoing between the U.S., UK and Libyan ambassadors at the United Nations, but the matter is not expected to be settled before the August deadline and the results of the appeal process on the Lockerbie judgment by the Scottish tribunal, the newsletter said.
The modified ILSA legislation will be divided into two parts, one dealing with Libya and the other Iran, MEES reported.
Iranian sanctions are likely to remain unchanged, but much hinges on the results of Iran's presidential election on June 8, MEES said. |
