Shell calls a halt on Libyan E&P operations - BP ends force majeure claims

Royal Dutch Shell has revealed that it is planning to cancel all of its oil exploration programmes taking place in the North African country of Libya. A spokesman for the company said, “Shell Exploration and Production Libya has informed the National Oil Corp. that it intends to suspend and abandon drilled wells and stop exploration in Libyan licenses.

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

“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.”

Other companies are beginning to think twice about conducting operations in Libya, at least in the near future. An endemic lack of security and harsh contracts are routinely cited as two of the most pressing issues dissuading potential investors from operating in the country.

According to some reports, several companies have already ceased operating in the region because of these issues. German company Wintershall has stated that the conditions could negatively impact future investment decisions.

Other companies have simply tried to mitigate the risks of operating in the region by reducing the employee numbers and limiting the scope of their operations; essentially running little more than skeleton crews in order to keep operations ticking over.

BP, however, has bucked the recent trend by lifting the force majeure claims on its operations in the country and announcing its intentions to return to conducting E&P activities.

Edited from various sources by David Bizley

Read the article online at: https://www.oilfieldtechnology.com/exploration/29052012/shell_to_cancel_libyan_eandp_operations/