Security Concerns Worsen For Oil Firms In Libya
A deadly attack on the U.S. consulate in Benghazi could further delay the already-slow return of expatriate workers to Libya, threatening th...
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A deadly attack on the U.S. consulate in Benghazi could further delay the already-slow return of expatriate workers to Libya, threatening the OPEC producer's future plans to boost output.
After last year's war that ousted Muammar Gaddafi, the North African country has surprised analysts by bringing its oil production close to pre-revolution levels faster than expected.
But expatriate oil workers are concerned about precarious security with a government struggling to impose its authority on a myriad of armed groups who refuse to lay down their weapons.
Last week's assault on the U.S. consulate and a safe house in the eastern city, in which the U.S. ambassador and three other Americans were killed, has heightened fears.
Many foreign oil firms operating in Africa's third biggest oil producer have since beefed up security measures in cities bristling with weapons and have restricted staff movements to the bare minimum.
An official at Libya's state-owned National Oil Corporation said a few senior U.S. oil executives had left the country "for a temporary time" and would be returning shortly.
"In general, of course it will have an impact on the security issue in Libya in all sectors, not only in oil," Deputy Oil Minister Omar Shakmak told reporters. "It is important for any management to make sure their staff are safe and secure."
Outbursts of violence have deterred foreign firms from bringing back all their expatriates.
"It won't stop production but maybe those who were looking at exploration may be re-assessing as there is an increased security risk," a Western security contractor said.
"Staff could be cut down to essential levels and any plans of bringing families back will be further put on hold."
Libya, with Africa's largest oil reserves, needs foreign investment and expertise to increase oil and gas production. Oil fields have separate, secure residential compounds and thousands of former rebel fighters guard installations.
News Source: Reuters
But expatriate oil workers are concerned about precarious security with a government struggling to impose its authority on a myriad of armed groups who refuse to lay down their weapons.
Last week's assault on the U.S. consulate and a safe house in the eastern city, in which the U.S. ambassador and three other Americans were killed, has heightened fears.
Many foreign oil firms operating in Africa's third biggest oil producer have since beefed up security measures in cities bristling with weapons and have restricted staff movements to the bare minimum.
An official at Libya's state-owned National Oil Corporation said a few senior U.S. oil executives had left the country "for a temporary time" and would be returning shortly.
"In general, of course it will have an impact on the security issue in Libya in all sectors, not only in oil," Deputy Oil Minister Omar Shakmak told reporters. "It is important for any management to make sure their staff are safe and secure."
Outbursts of violence have deterred foreign firms from bringing back all their expatriates.
"It won't stop production but maybe those who were looking at exploration may be re-assessing as there is an increased security risk," a Western security contractor said.
"Staff could be cut down to essential levels and any plans of bringing families back will be further put on hold."
Libya, with Africa's largest oil reserves, needs foreign investment and expertise to increase oil and gas production. Oil fields have separate, secure residential compounds and thousands of former rebel fighters guard installations.
News Source: Reuters
