Oil Price website mentioned yesterday, Tuesday, that the political chaos left by the multinational military intervention in the country in 2011 deeply affected Libyan oil, and in recent months the protests in Libya forced the closure of two of the largest oil fields, which seriously affected fuel production.
The site said that the Italian company Eni will start oil exploration in two exploration areas in Libya as part of a site exploration contract with the National Oil Corporation.
Oil Price stated that drilling works for exploratory studies will be established near the gas facilities in the Wafaa field, with a budget of $8 billion available for this purpose. Offshore drilling operations will also be conducted this time in cooperation with the British Petroleum Company.
The site continued by saying that the Italian Eni has been working in the production of oil and gas in Libya for more than 60 years, and that its participation in the oil infrastructure in the country is comprehensive, as it participates in the stages of exploration, production and development, as production activities are operated through the joint venture Mellitah Oil and Gas with Eni by a percentage. 50% and the National Oil Corporation by 50%.
The site indicated that the force majeure announced in 2014 was canceled after Eni completed the assessment of safety risks in the areas where the exploration program will be implemented. This study yielded positive results, and force majeure is one of the reasons that exempts from liability in the event of unexpected events in contracts.
While Libya finds the way to political stability, the National Oil Corporation should expect new partnership agreements and the return of capital, as well as an increase in production and economic efficiency in the country, according to the site.