ExxonMobil Returns to Libya After Decade-Long Absence Due to Security Concerns
Libya’s National Oil Corporation has signed a memorandum of understanding with ExxonMobil to resume operations in the country after a ten-year hiatus caused by security concerns. The agreement focuses on conducting detailed geological and geophysical studies to identify hydrocarbon resources in four offshore blocks located off the northwest coast and in the Sirte Basin.
ExxonMobil, the world’s largest publicly-traded energy company, scaled back its Libyan operations in 2013 as growing instability made the security and political risks unjustifiable. The decision came amid broader concerns among international oil companies about whether Libya’s potential returns warranted the escalating risks following the 2011 uprisings.
Libya’s oil sector has faced repeated disruptions over the past decade as the country remained divided between rival authorities in the east and west following the NATO-backed uprising that toppled Muammar Gaddafi. The new agreement signals renewed confidence in Libya’s stabilizing security situation and its significant untapped hydrocarbon potential.
Source: bairdmaritime.com
