Page 4 - AfrOil Week 50 2021

AfrOil COMMENTARY AfrOil

Storage tank in Libya (Photo: TotalEnergies)

Libyan contradictions

and contraindications

The North African country appears to be drawing interest from several major IOCs, but the
impending presidential election could spark enough turmoil to prevent a new wave of investment

THERE has been some good news coming out years, we have [shifted] increasing shares of gas
of Libya lately, in that several international oil production from export to the domestic market
WHAT: companies (IOCs) have shown interest in new to fulfil domestic market demand. This clearly
Following TotalEnergies’ projects or in expanding existing schemes to demonstrates the utmost attention we have paid
new agreements on Waha include natural gas, gas-to-power and renewable to the economic and industrial development of
and Eni’s show of interest energy components, as well as crude oil produc- Libya.”
in Libya’s domestic gas tion and exports. Since then, Reuters has reported that
market, Shell is rumoured TotalEnergies (France), for example, UK-based Shell (formerly Royal Dutch Shell)
to be considering a new revealed late last month that it had signed a was considering a return to the North African
project. package of agreements worth more than $2bn state. Two sources told the news agency at the
with the Government of National Unity (GNU). end of November that the international major
WHY: Under those agreements, the French major will was looking into proposals for coming back to
The investment climate is increase its equity stake in the Waha oilfields Libya to develop oil, gas and solar resources. The
looking shaky in the run-
up to the December 24 from 16.33% to 20.41%, raise the fields’ produc- sources did not say whether Shell was eyeing
presidential election. tion capacity, install a gas gathering network in any specific projects, but Reuters noted that the
order to reduce associated gas flaring, establish company had exited Libya about 10 years ago
WHAT NEXT: 500 MW of solar generating capacity and pro- in response to the turmoil that erupted follow-
Pre- and post-election vide electric power to local communities and ing the ouster of the country’s long-time ruler,
unrest could lead IOCs to industrial facilities. Moammar Qaddafi.
postpone projects. Around the same time, Eni (Italy) indicated
that it saw Libya itself as a growth market for Political challenges
gas. Speaking at the Libya Energy & Economic At the same time, these positive developments
Summit in Tripoli on November 22, the Italian have been paired with uneasy speculation about
major’s COO Alessandro Puliti said: “In the past Libya’s upcoming presidential elections.

P4 www. NEWSBASE .com Week 50 15•December•2021