Libya Nears Inflection Point in Upstream

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Libya's recent run of stable oil production and exports faces renewed political risk. It comes as the Opec country attempts to improve the upstream investment climate amid a contractual dispute with Eni and calls from international oil companies (IOCs) for better fiscal terms. Oil Minister Mohamed Oun told Energy Intelligence this week that Libya is seeking to address both challenges to ensure that Libya remains a reliable supplier — and not an oil market wildcard — in the short term, while maximizing the potential of its large, low-cost reserves over the longer-term. Libya has enjoyed a year of steady oil production of 1.2 million barrels per day and export volumes of around 1.1 million b/d. But political instability has returned with the threat of another oil blockade possibly looming as eastern politicians demand a transparency mechanism for the collection and distribution of oil revenues. However, Oun is skeptical that any new mechanism would work effectively. “To whom will you distribute it? To the municipalities? To lower levels [or] to higher levels? I mean, it may be difficult to achieve...without very tedious processes and management,” he told Energy Intelligence in an interview in Vienna this week.

Policy and Regulation, Upstream Licensing, Oil Supply, Opec/Opec-Plus
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