Libya Oil Chief Says Crude Production ‘Could Reach a Halt’ Due to Conflict

[dipsydoodle]

Source: Bloomberg News Mar 19, 2011 4:03 PM GMT

Libya’s oil production fell to less than 400,000 barrels a day after foreign companies pulled out their staff, the chairman of the country’s state-run National Oil Corp., Shokri Ghanem, said in a televised media conference from Tripoli.

Ghanem said the North African country had no intention of breaking commitments with foreign companies and called on them to send their employees back to resume work. Libya may otherwise award new oil and gas concessions directly to companies in countries such as China, India and Brazil in order to raise production, which “could reach a halt,” he said.

Oil and gas installations in Libya, including the main oil hub of Ras Lanuf, were damaged in fighting between rebels seeking the ouster of leader Muammar Qaddafi and forces loyal to him after mass protests against his four-decade rule erupted on Feb. 17.

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Daily supply from Africa’s third-largest producer dropped by an estimated 195,000 barrels to 1.385 million barrels in February, from 1.58 million barrels the previous month, before slumping to a “trickle” by March 11, the Paris-based International Energy Agency said in its monthly Oil Market Report.

Read more: http://www.bloomberg.com/news/2011-03-19/libya-oil-chief-says-crude-production-could-reach-a-halt-due-to-conflict.html

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Mention has been made in other current news about Libya giving all of the contracts to Chine and India which of course has no bearing on the current conflict - oil sales are oil sales.