Deputy oil minister submits recommendations to GNU PM
TotalEnergies expected to boost presence, wants to buy Hess stake in Waha
Production recovery slows down due to aging infrastructure, lack of funds
Libya's Government of National Unity has received proposals from the country's oil and gas ministry to expand the presence of international oil companies such as TotalEnergies in the North African producer, the deputy oil minister said Nov. 1.
Not registered?
Receive daily email alerts, subscriber notes & personalize your experience.
Register NowRefaat al-Abbar, who also chairs the ministry's technical committee for production affairs, said he submitted these recommendations to Prime Minister Abdul Hamid Dbeibah and hoped they would be implemented soon.
The proposals focus on the "need for the presence of major international companies, investors and regional partners to support the Libyan oil and gas sector, such as TotalEnergies which will bring stability to Libya," Abbar said in a statement.
The minister did not reveal further details on what these recommendations are.
This comes amid a push by France's TotalEnergies to boost its presence in Libya's upstream space, by increasing its stake in the Waha oil concession.
TotalEnergies is very active in Libya, with stakes in the Waha, Sharara, Mabruk and Al Jurf oil fields. This follows a tried and tested model for the energy major which has been successful in looking for higher returns in risk-prone areas.
Libya's oil sector is desperate to generate more interest from IOCs as its recent production recovery has been stymied by a lack of funds.
TotalEnergies, Eni, ConocoPhillips, OMV, Repsol are some of the IOCs present in Libya but the likes of BP, Shell and ExxonMobil do not currently operate in the OPEC producer anymore.
Waha deal
US oil company Hess Corporation has been in advanced talks to sell its 8.16% stake in Libya's giant Waha concessions, with TotalEnergies and ConocoPhillips emerging as the two front-runners for the deal, as reported by S&P Global Platts July 1.
Sources said they expected TotalEnergies and Hess to close a deal in the coming weeks.
Representatives at TotalEnergies and Hess were unavailable for comment.
Like TotalEnergies, ConocoPhillips also has a 16.3% stake in the Waha concessions, which have the capacity to produce more than 350,000 b/d.
The development of Waha's North Gialo and NC-98 oil fields are a priority for Libya, and production from these sites is poised to rise by 175,000 b/d.
Production slowdown
Libya's production recovery has slowed down recently due to a series of pipeline leaks.
A lack of finance allocated for maintenance and repairs caused by political instability has made it difficult for NOC to maintain the assets, keeping a lid on output.
Libyan crude production had averaged 1.15 million b/d so far this year, according to Platts estimates, as it faced issues arising from its exhausted infrastructure and a lack of funds.
A large part of Libya's aging infrastructure has been wrecked by civil war, militant and terrorist attacks, and general neglect over the past decade.
Libya holds Africa's largest proven reserves of oil, and its main light sweet Es Sider and Sharara export crudes are sought after by refineries in the Mediterranean and Northwest Europe for their gasoline and middle distillate yields.
"Oil" - Google News
November 01, 2021 at 07:50PM
https://ift.tt/3nPPqwm
Libyan oil ministry proposes steps to boost IOC presence - S&P Global
"Oil" - Google News
https://ift.tt/2SukWkJ
https://ift.tt/3fcD5NP
Bagikan Berita Ini
0 Response to "Libyan oil ministry proposes steps to boost IOC presence - S&P Global"
Post a Comment