Occidental Operations in Libya

=History=

Occidental began operations in Libya in 1965, the company's only operation in North Africa, and in 1967 made the first of several giant discoveries. They were the first US company to resume oil operations in Libya after US sanctions were lifted in 2004, re-entering its original producing areas in 2005. . Oxy saw significant growth in the Middle East and North Africa region from the year 2000 onwards.

In 2006 Oxy expended more than 70 percent of its worldwide exploration budget in Libya, making Libya a key market for the company.

Prior to the outbreak of fighting in 2011, Occidental was said to be producing 13,000 barrels of oil equivalent (boe) per day. In early 2011 the company ceased operations in the country as a result of the unrest, however reports in October 2011 claimed that the 70,000 bpd Nafoora field in Libya, where Occidental operates, had restarted production, making it the first US company to produce crude in the country since the overthrow of Gaddafi.

=Activities and contracts=

Following success in the January 2005 EPSA bid round, where the company won acreage in 9 different areas, Oxy in 2007 held a told exploration and production acreage in Libya of approximately 130,000 square kilometres.

In June 2008 Occidental was one of the first IOCs to renegotiate its contracts in Libya, signing a total of five Exploration and Production Sharing (EPSA) contracts with the National Oil Corporation (NOC) and extending the duration of the contract. The renegotiated contracts involved a US $1 billion signature bonus and Oxy's commitment to a $2.5 billion investment plan, with the NOC matching an equal amount. Oxy intended to drill some 400 wells starting in 2011. Following the ratification of the contract extensions, US Embassy representatives saw Eni, PetroCanada and Oxy as the leaders in the Libyan energy sector. However, former CEO Ray Irani claimed in 2010 that Oxy's results since re-entering Libya in 2005 have been disappointing, and production stood at only 6,000 barrels per day (bpd) in 2010, down from 21,000 bpd two years earlier.

=References=