Friday, June 1, 2012

Libya oil production, exports back to normal


Libya by NATO and its allies is becoming horribly clearer with each passing day. Estimates of those killed so far vary, but 50,000 seems to be a low estimate. Indeed, the British Ministry of Defence was boasting that the onslaught had killed 35,000 as early as last May, and this number is constantly growing, as the destruction of Libyan state forces by the British, French and American blitzkrieg has left the country in a state of total anarchy.


Having nothing to unite them other than their former willingness to act as NATO's foot soldiers, Libya's former "rebels" are now turning on each other. 147 people were killed in in-fighting in southern Libya in a single week earlier this year, and in recent weeks government buildings including the prime ministerial compound have come under fire from rebels demanding cash payment for their services.


$1.4 billion has already been paid out, demonstrating that it was the forces of NATO colonialism, and not former Libyan leader Muammar Gaddafi, who were reliant on "mercenaries". However, these payments were suspended last month due to widespread nepotism. Corruption is becoming endemic in Libya, with a further $2.5 billion in oil revenues that was supposed to have been transferred to the national treasury remaining unaccounted for.


Libya's resources are now being jointly plundered by the oil multinationals and a handful of chosen families from among the country's new elites: this is a case of a classic neo-colonial stitch-up. The use of these resources for giant infrastructure projects such as the Great Manmade River project, and the massive raising of living standards over the past four decades that came about as a result -- Libyan life expectancy rose from 51 to 77 after Gaddafi came to power in 1969 -- sadly look to have become things of the past.


However, woe betide anyone who mentions that now. It was decided long ago that no supporters of Gaddafi would be allowed to stand in the upcoming Libyan elections, but recent changes have gone even further. Law 37, passed by the NATO-imposed Libyan government last month, has created a new crime of "glorifying" the former government or its leader, subject to a maximum sentence of life imprisonment. Would this include a passing comment that things were better under Gaddafi? The law is deliberately vague enough to be open to interpretation. It is also a recipe for institutionalised political persecution.


Libya is Africa’s major oil producer and one of Europe’s biggest North African oil suppliers. Supplies from North Africa to Europe destinations have the advantage of being both timely and cost effective. According to the 2011 BP Statistical Energy Survey, the 1.6 million barrels of Libya crude oil per day represents about 2 % of the world crude production that is currently imported by almost the same old buyers. 


According to Dr. Mayuf, the local operating companies are 7, on top of them are AGOCO, Al-Waha, Al-Zwaytina, Sirte and Ras lanuf. Foreign partners operating in Libya's oil and Gas since 2009 have reached up to 29 including the French TOTAL, the Italian Eni and Mellitah , the Spanish Respol, the American Exxon Mobile in addition to Chinese, Indian Japanese and Russian companies. Petro Canada, a partner with the Libyan Harouge is one of the biggest partners in Libya. 


Mahmoud face to camera (in location): with the Libyan oil exporting back to normal, the Libyan people have got a reason to rejoice since they have regained the country's major fortune. But with the fact that foreign companies are still dominating a big share of refineries and the existence of a lack of transparency within the oil authorities, billions of petrodollars are still unaccounted for. 


The transitional government has set up a special committee to investigate allegations of widespread corruption in the oil industry before the revolution unseated Muammar Gaddafi. 


Revisions of oil contracts in Libya are underway as the interim government has started investigating foreign oil companies over their past relationships with the former government. 


As Libya’s economy is based on oil and exports contribute between 75% and 90% of State revenues, European countries are the major beneficiaries of the Libyan oil exports garnering around 80%. Italy comes first, then France, the UK, Spain and Germany. Although they are the same countries that helped the revolutionaries against Gaddafi, some of them are still worried about any potential revision of their contracts.

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