Shell ceases exploration of Libya oil

The Anglo-Dutch Shell oil company said on the 29th that due to “disappointing” results, it will stop oil exploration projects in Libya, but will continue to explore drilling opportunities in this country.

At the same time, Anglo-Dutch Shell also decided to stop gas drilling operations in Libya. A spokesperson for the company told AFP that Libya’s national oil company had been informed that Shell “planned to suspend and abandon drilling and stop exploration in Libya”.

The spokesman, who did not wish to be named, said: "Despite the extensive seismic research and drilling activities, the results were disappointing and further exploration is not economically acceptable."

“Libya’s national oil company has confirmed our decision and we promise to actively seek new upstream business opportunities,” he said. “Shell continues to see Libya as an important country in the portfolio and will maintain an office in Libya.”

Oil is a pillar industry in Libya. Last year’s civil war made oil production and exports nearly stagnant. After the new government took office, priority was given to the restoration of oil production as a matter of economic reconstruction. Today, the daily crude oil production is about 1.5 million barrels, which is close to the pre-war level.

Agence France-Presse reported that the Libyan government sought to attract foreign direct investment and accelerate post-war reconstruction. At the same time, many foreign energy companies have entered Libya in search of business opportunities.

Nuri Beruin, president of Libya’s National Oil Company, met with the head of BP on the 29th. British Petroleum announced that it will return to Libya to continue oil and gas exploration.