Libya: Country Attractive to Oil Companies
Panafrican News Agency, May 16
International oil companies have voted Libya as the most attractive country for exploration activities in the world.
In a recent annual confidential survey conducted by the British Robertson Research International, Iran, Algeria, Egypt and Iraq emerged among best 10 countries.
The survey gauges the level of interest in new ventures across 146 countries outside North America.
Robertson estimates Libya's undiscovered hydrocarbon reserves to be anything up to 3 million million cubic metres (equal to 18,870 million barrels of oil), making it one of the richest areas in the world for new exploration and production opportunities.
Tripoli is planning to increase its production over the next five years to 2 million barrels a day from around 1.4 million b/d today.
Proven reserves are now estimated at 29.500 million barrels of oil.
However, the country's neglected pipeline and processing infrastructure would first need significant investment if this target is to be achieved.
State owned oil operator National Oil Corporation (NOC) has earmarked 1,500 million US dollars for the development of the sector over the next five years but has yet to announce details.
Oil companies are eagerly awaiting NOC's decision on the allocation of licences for the development of three packaged exploration blocks in the Murzuq, Sirte, Kufra, Ghadames and Cyrenaica basins.
In addition to the packaged areas, NOC is also expected to award concessions for 137 smaller un-packaged blocks, covering an unexplored area of 835.000 square kilometres.
Interest also surrounds the prime acreage in the Sirte basin held by the Oasis group of US producers, which has remained redundant since sanctions were imposed in 1986.
The current Iran-Libya Sanctions Act, brought into force in 1996-is up for review in August and NOC is keen to see the Oasis group's concessions developed.
If ILSA is renewed and NOC loses patience with Washington, Europe's oil majors are expected to quickly take advantage, sources say. |
