BASF says its Libya oil bid will not affect US firms
FRANKFURT, May 9 (Reuters) - German chemicals group BASF AG said on Wednesday it was among firms bidding for rights to drill for oil and natural gas in Libya but did not expect to violate the rights of U.S. companies in doing so.
``We are interested in acquiring drilling rights in Libya,'' BASF spokesman Michael Grabicki said.
``Our understanding is that the acquisition of these rights offered by Libya will not violate the rights of any third party including U.S. companies,'' he said, adding that several firms were bidding. He could not name them.
Libya set a January 2001 deadline for bids for three oil exploration packages, but Grabicki declined to give details about BASF's bid.
He spoke after the Washington Post, citing German officials, reported that wholly owned BASF oil and gas subsidiary Wintershall was seeking permission to drill in Libyan fields that formerly belonged to U.S. companies.
Conoco Inc., Amerada Hess Corp. and Marathon Oil Co. were forced to abandon oil and gas properties they owned in Libya in 1986 when the United States implemented sanctions against the country, which it accused of sponsoring terrorism.
Libya continued to recognise the U.S. oil companies' ownership of the assets and Conoco, a leading opponent of U.S. sanctions against Libya and Iran, has said it hopes to return to both countries if and when sanctions are lifted.
Conoco Chief Executive Archie Dunham said on Tuesday some managers at Libya's national oil company appeared to favour selling the oilfields Conoco was forced to abandon 15 years ago, but he did not expect this to happen.
A survey published by UK consultants Robertson Research in March showed that Libya and Iran were the two most popular countries among international oil companies for investment in new exploration activities.
This is despite the U.S.'s 1996 Iran-Libya sanctions act (ILSA), which threatens sanctions on foreign energy firms investing more than $40 million in either country.
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BASF Wintershall 'surprised' by reported U.S. reaction to bid for Libyan oil
KASSEL, Germany (AFX) May 9 - BASF AG's Wintershall AG oil and gas business
is "surprised" by the reported U.S. government's reaction to its participation in
bidding for oil concessions in Libya.
U.S. companies have not been able to drill for oil in Libya since 1986 due
to government sanctions imposed by former President Ronald Reagan, and in 1996
Congress enacted a law, threatening foreign companies with penalties for
investing in Iran and Libya.
European companies have defied the sanctions law in the past, but American
officials now feel Wintershall's bid is the first that threatens U.S. economic
interests, reported the daily International Herald Tribune this morning.
The oil fields at issue are estimated to hold more than 3 bln barrels of oil
as well as newly identified potential for natural gas, the IHT said.
"We are surprised to be receiving so much attention," said Wintershall in a
statement.
"Wintershall is just one of many, much larger, oil and energy companies that
may have an interest in acquiring the concessions being auctioned by the
government of Libya," the company added.
"Why we are being singled out for the attention makes no sense," it said.
In 1986, U.S. companies stopped oil production in Libya but formed the Oasis
Group with the national government to protect their exploration and production
assets for three years, the Tribune said.
However, the agreement lapsed, with the oil companies estimating they have
lost 5 bln usd in revenue in the last 15 years, the paper reported.
"..., it is our understanding that the acquisition of these rights will not
violate the rights of any third parties' holdings in Libya, including those of
U.S. companies," Wintershall said in its statement.
Wintershall said it has been in Libya for decades and participated in the
bidding process as part of its ongoing exploration efforts to enhance the
ongoing success of its oil and gas business. |
