Western Oil Majors Will Get the First Crack at Libyan Oil Production
September 1, 2011
Countries that supported the overthrow of dictator Moammar Gadhafi’s regime are likely to get first crack at post-war Libyan oil production, while those that sat on the sidelines are at risk of losing out.
“We don’t have a problem with Western countries like the Italians, French and U.K. companies. But we may have some political issues with Russia, China and Brazil,” Abdeljalil Mayouf, information manager at Libyan rebel oil firm AGOCO, told Reuters.
Talk like that has many Western oil companies licking their chops. Meanwhile, officials from China and Russia are foundering for ways to deal with the emerging Libyan government, the National Transitional Council (NTC).
Although Libyan oil production before the uprising comprised just 2% of global output, it is prized because it is of the light sweet crude variety – it contains less sulfur than most other oil and is thus cheaper to refine.