Rising security challenges and a wave of labor unrest are hitting Libya’s oil sector, whose top producing firm, state-owned AGOCO is already pressured by a debilitating lack of electrical power at its key fields.
This electricity shortage has reduced effective AGOCO capacity from 380,000-400,000 b/d down to 300,000 b/d, a company source tells MEES. BP withdrew some non-essential expatriate staff from the country on 11-12 May “following advice by the [UK] foreign office,” in the wake of several recent high-profile security scares, including a 23 April bombing at the French embassy, a militia takeover of ministry buildings, and 10 May bombings of police stations in Benghazi. The UK major’s move is in line with action taken by at least one US operator in the wake of the embassy bombing. Other oil investors have stayed put, MEES understands. These include Turkey’s state-owned TPAO and Spain’s Repsol, operator of 300,000-350,000 b/d in Libya’s south-western Murzuq basin. (CONTINUED - 959 WORDS)