Shell Halts Oil-Exploration Projects In Libya

'Despite an extensive seismic and drilling campaign in these licenses, results have been disappointing and further exploration cannot be economically justified,' a spokesman said.

Royal Dutch Shell PLC (IW 1000/2) on Tuesday said it is halting oil-exploration projects in Libya owing to "disappointing" results but said it will continue to study drilling opportunities in the country.

"Shell Exploration and Production Libya GmbH has informed the National Oil Corp. that it intends to suspend and abandon drilled wells and stop exploration in Libyan licenses LNGDA and Area 89," a Shell spokesman told AFP.

"Despite an extensive seismic and drilling campaign in these licenses, results have been disappointing and further exploration cannot be economically justified."

The spokesman added: "NOC has acknowledged our decision and we have agreed to actively peruse new upstream business opportunities.

"Shell continues to view Libya as an important country in its portfolio and will maintain a representative office to pursue upstream business opportunities with the Libyan NOC."

Foreign energy companies are looking to profit from a more stable Libya, whose daily oil output is meanwhile gradually returning to levels seen before last year's uprising against Moamer Kadhafi.

Copyright Agence France-Presse, 2012

TAGS: Trade
Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish