Libya opens up bids to global oil players for exploration and production

TRIPOLI, Libya - The Libyan National Oil Company (NOC) has opened up bids to global oil marketers to fully explore and produce oil in the country.

The north African country that has been plagued with civil war since the death of Muammar Gaddafi cited an improved security situation hence opening its doors to multinational oil players.

As per the statement released by NOC this week "The NOC calls on international companies operating in the oil and gas sector, with whom agreements for exploration and production of oil and gas have been signed, to lift the force majeure invoked on their side."

The "state of force majeure" is a measure invoked in exceptional circumstances, allowing an exemption from the responsibility of the NOC, or in this case, companies operating in Libya, in case of failure to meet contractual obligations.

Over 11 years since the ousting of the Libyan leader Muammar Gaddafi, the north African nation has witnessed violence as different rebel group fight to control the oil-rich nation.

The violence has affected the exploitation of oil fields, and the transport of hydrocarbons and oil terminals, which are caught between the two camps.

The NOC further explained that it launched this appeal after having carried out an "assessment" of the security situation and noted a "dramatic improvement" in some sites where it was difficult to operate before.

They are now urging foreign companies to "resume their operations" of exploration and extraction, assuring them that it would provide them with "all the necessary support" so that they could work "in a safe environment", in "cooperation with the civilian and military authorities" on the spot.
Since March, two governments have been fighting for power, one based in Tripoli (west) and recognized by the UN, the other supported by parliament and the camp of Marshal Khalifa Haftar, the strongman of the east.

The day after his appointment in mid-July as head of the NOC, Farhat Bengdara announced the lifting of a blockade on six major oil fields and terminals, closed since mid-April by groups close to the eastern camp.

Last month he said his country was seeking to increase its oil production to 2 million barrels per day up from 1.2 million barrels per day.

GAROWE ONLINE