Canoel International Energy has announced that it has received notification that the company is now included in the list of recognized traders of crude oil with the Libyan National Oil Corporation (NOC).
This notification came after months of long negotiations with senior officers of the Libyan National Oil Company (NOC). As previously announced on November 21, 2012, Canoel had established a presence in Libya by starting the long process to open a local representative office.
As the new government's economic strategy continues to develop, Canoel is confident that its representative office will enable management to evaluate additional opportunities in a timely and efficient manner. This will also allow the company to clearly differentiate itself from other entities seeking entry in the Libyan petroleum sector.
These efforts are made with the intention to conduct future negotiations for purchasing or assuming operatorship of exploration and production assets in Libya. Local business connections are expected to facilitate the vetting of both exploration and production assets.
The negotiations with NOC are focused on two opportunities:
1) the trading of crude oil, and
2) the application to get access to producing fields that are temporarily shut-in.
In terms of the first opportunity, as noted, company management has been notified that Canoel is now included on the list of the recognized traders of crude oil with the NOC.
In terms of the second opportunity, Canoel can now concentrate its efforts toward the acquisition and advancement of early stage exploratory acreage as well as the resumption of operations of temporarily suspended fields.
To date, Canoel's operating history in Argentina and Italy has validated this strategy of acquiring and enhancing producing assets, being either oil or natural gas fields.