A new report from Deloitte, entitled "Mergers and Acquisitions in the Oil and Gas Industry -- Current upstream M&A issues and transaction considerations", looks at the factors affecting investment in Libya.
"Libya is now poised to return to full-scale oil production in the not-too-distant future and Iraqi production, which has now passed the 3 million barrel per day level, is benefiting from foreign investors with the expertise to exploit these resources.
"The question remains as to whether these nations will achieve optimum production levels or whether they will continue to face constraints due to outdated infrastructure, political challenges (such as in Iraq), policy uncertainty and continued security threats.
"North African countries are seen to be returning to the ‘business as usual’ mode, in the post Arab Spring climate with an increase in foreign investments, especially in Egypt and Libya.
"Legacy risks remain, however, as off-take contracts with national oil companies (NOC) continue to experience disruption during the transition period of governments with E&P companies in the region facing significant challenges to working capital management.
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