European are not stealing Libya oil, official says

The European Union (EU) is not stealing Libyan oil and investors from Nato countries exited the oil sector during the Gaddafi era, said David Bachmann, commercial counsellor and head of economic and commercial section at the Austrian Embassy in Libya.

“We are not stealing Libyan oil. We pay for what we get,” he said.

Libya’s state-owned oil companies control most of its production but foreign oil companies help sustain its output through joint venture.”

“The reasons for the intensity of European interest in Libyan oil are clear enough. Italy is Libya’s nearest European neighbor and the most important oil trade partner as their shares in oil reached 32% followed by Germany by 14%, France 10%, china 10%, Spain 9%, US 5%, Brazil 3% and 14% goes to the rest of EU.”

Bachmann remarked that European interest in the oil sector in Libya is an old story started during Gaddafi’s time.

“The foreign oil company contracts were rewarded during the Gaddafi era so there is no room for new contracts as most of them will not be terminated before 2015 or 2025.”

Moreover the European, China and US share in Libya oil is still the same, he added.

Europe’s oil giants Eni, produce 244,000 barrels per day in Libya, while Total are producing 55,000 barrels per day.

Repsol YPF of Spain produces 45,000 barrels per day and OMV of Austria also hold large contracts from the Gaddafi era producing 33,000 barrels per day, while Britain’s BP have taken a leading role in developing Libya’s emerging gas fields, and will now hope also to ramp up their activities in oil exploration and production.

(Source: Gulf News)

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