UPDATE 3-ENI leads Libya oil race, rebels warn Russia,China

[jakeXT]

Source: Reuters

UPDATE 3-ENI leads Libya oil race, rebels warn Russia,China

MILAN/LONDON, Aug 22 (Reuters) - Italian oil company Eni led the charge back into Libya on Monday as rebels swept into capital Tripoli, hailing the end of Muammar Gaddafi's rule and warning Russian and Chinese firms of contract revisions.

..

"We don't have a problem with western countries like Italians, French and UK companies. But we may have some political issues with Russia, China and Brazil," Abdeljalil Mayouf, information manager at Libyan rebel oil firm AGOCO, told Reuters.

The comment signals the potential for a major setback for Russia, China and Brazil, which opposed tough sanctions on Gaddafi or pressed for more talks, and could mean a loss of billions of dollars worth of oil exploration and construction contracts in the African nation.

Shares in European firms -- Eni , Austria's OMV and France's Total -- rose by 3-5 percent, despite a modest fall in the price of oil LCOc1, on hopes the firms would be able to quickly re-establish output from Libya.

Read more: http://af.reuters.com/article/libyaNews/idAFL5E7JM17F20110822?pageNumber=2&virtualBrandChannel=0&sp=true

[harmonicon]

1. HAHAHAHAHAHAHA!!!

If I couldn't laugh, I would just cry.

[TheWraith]

5. They're "leading" because they're the ones who had the contracts before the revolution.

Remember how the rebels said they're going to honor existing contracts? Italy was Libya's biggest single customer.

[harmonicon]

6. That I understand.

What I also understand, but have to laugh at, is the statement that military allies will get preferential treatment over others who supported negotiation.

[bemildred]

2. Oil is a curse. nt

[cutlassmama]

3. It sure is, especially for our country. We need to find other ways to get

our energy ASAP.

[Cirque du So-What]

4. It's sure as hell not a blessing for the vast majority

of people unfortunate to have oil beneath their feet. In most cases, oil revenues finance the mechanism of control used by the regime to terrorize the population into submission.