Statoil Operations in Libya

=History=

A Libyan office was established in Tripoli by Statoil in 2005, the same year in which the group was allocated licenses for two onshore operations. This marked the beginning of a five-year exploration programme. Statoil were to draw on their experience in neighbouring Algeria, where the group has had activities since 2003.

In February of 2011, Statoil closed its office in Tripoli and withdrew all non-Libyan personnel, in the wake of rising protest and violence across the country. The company re-opened its Libya office in March 2012, with the priority of restoring pre-war output levels. A company spokesman said that damage to facilities was “less than we feared beforehand”. Press reported that Statoil was positioning itself for potential upcoming contracts in the country.

=Activities and contracts=

Statoil participates in land-based oil production and exploration activities in the Mabruk field and in the Murzuk basin, and has been pursing exploration opportunities in other parts of the country. At the end of 2010, Statoil employed 44 people in Libya and was producing 4400 barrels of oil per day (bpd). Prior to the civil unrest in spring 2011, the company had set high ambitions for a production increase to 2.2 million barrels per day by 2012.

Statoil shares the operations at the Mabruk field, where it owns 5 percent equity, with French Total. Production came onstream at this field in 1995, at the end of 2009 it counted 59 productive wells and the license is due to expire in 2008. Following the renegotiation of the Production Sharing Agreement (PSA) at this site by the Libyan National Oil Corporation (NOC) in 2008, Statoil's share was reduced from 25-5 percent.

At the Murzuq field, Statoil owns 2.4 percent equity and operates alongside Spain's Repsol. This field came onstream in 2003, counted 93 productive wells at the end of 2009 and the license is due to expire in 2038. The oil from the Murzuq fields was transported by pipeline to the Zawia terminal for lifting by ship.

=References=