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CHAPTER TWO
Developments of Energy Resourrces
I. OILAND GAS
1. Exploration and Production: An Overview
The political and security crises that stormed the Middle East
and North Africa in 2011 have prevailed in 2012, but their tangible
effects on the petroleum industry were marginal thanks to the gradual
recovery of Libyan oil production
i
which averaged 1.434 million
barrels per day in the first three quarters of 2012.
No serious damage was inflicted on Libyan oil and gas production
facilities as most of which are located far from where the main battles
took place, however, the facilities near the coast, such as pipelines
and marine terminals, suffered some dents. The main reason for the
collapse in oil and gas production in 2011 was the decision of all
foreign operators to evacuate their expatriate employees at the outset
of the conflict
ii
. British Petroleum -for example - has lifted Force
Majeure in respect of its Libyan Exploration and Production Sharing
Agreement (EPSA) with the National Oil Corporation (NOC)
effective 15
th
May 2012. Force Majeure has been in place since 21
st
February 2011. Discussions between NOC and BP have concluded
i Crude oil production based on direct communication, Monthly Oil Market Report,
OPEC, December, 2012.
iiArab Oil & Gas Directory, Libya, 2012.
CHAPTER TWO
ARAB AND WORLD DEVELOPMENTS IN
THE EXPLORATION, RESERVES AND PRODUCTION
OF ENERGY RESOURCES
