Libya to review foreign Crude Oil and Nat Gas deals
BP, COP, E
Libya could revise Crude Oil and Nat Gas deals signed under the regime of Col. Moammar Gadhafi if their pricing terms are abnormally low, and if there are suspicions of corruption, an official with the Arabian Gulf Oil Co. said Saturday.
Libya's National Transition Council has resumed Crude Oil production and is calling on foreign companies to return.
Saturday's remarks signal that the emerging Libyan regime will review existing Crude Oil deals and does not expect all of the contracts to pass the review.
We will revise contracts where there are doubts, Abdul Jalil Mayouf, a spokesman for the Arabian Gulf Oil Co., said Saturday.
Mr. Mayouf's comments build on remarks earlier in the week by Mustafa Abdul Jalil, the chairman of Libya'sNational Transitional Council, and suggest the emerging group of Libyan decision makers plan to follow through on past pledges to turn the page on the corruption-plagued Gadhafi years.
At a news conference this week with French President Nicolas Sarkozy and US Prime Minister David Cameron, Jalil pledged to honor contracts as long as they are clean and transparent.
International Oil Giants, such as Eni PLC (NYSE:E), BP PLC (NYSE:BP), OMV AG (VI:OMV) and ConocoPhillips (NYSE:COP) have large deals in the Country, which holds Africa's largest Crude Oil reserves.
Mr. Mayouf said Libya plans to review existing deals and will seek better terms in cases where production is sold at an abnormally low price to International companies or where corruption is suspected. Mayouf said a review of the deals could typically be undertaken by a joint commission of lawyers and Oil officials.
If the commission rejects the contracts, they could be referred to International arbitration if the companies refuse new terms. State owned Agoco operates the oilfields in the Eastern part of Libya.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.