The shutdown of Libyan oil fields by armed strikers could lead to some
wells being damaged, the country's oil minister said Wednesday, as concerns
grow the disruptions could impede the country's long-term oil potential.
In the past two months, armed strikers demanding more local jobs and greater
regional autonomy have closed many terminals and oil fields.
Speaking to reporters on the sidelines of the Oil & Money conference in
London, Libyan Oil Minister Abdulbari Arousi said some wells would be damaged
because of the "unexpected" shutdowns, but he insisted only a few
would be affected. "In general, they are OK," he said.
But in an interview with The Wall Street Journal on Tuesday,
Libya
's
former oil head, Abdalla Salem el-Badri, sounded a louder note of concern over
the risks to the country's production.
"If this continues, there will be damage above ground and
underground," said Mr. el-Badri, who is now secretary general of the
Organization of the Petroleum Exporting Countries.
"Artificial liftings now are not working," he said, referring to
machinery used to boost oil flows inside wells. If the shutdowns continue, such
equipment "will not work," he added.
Mr. Arousi said Libyan oil production has bounced back to about 700,000 barrels
a day after falling to 150,000 barrels a day in early September. Still, that is
less than half the country's normal production of 1.6 million barrels a day.
Asked when he expected the standoff with strikers to be resolved, Mr. Arousi
said: "We are expecting to solve this issue any time...soon."
But there have been new disruptions in recent days. The Wafa natural-gas field,
which is operated by a joint venture with Eni SpA (E), was shut down by members
of the Berber minority, reducing
Libya
's
exports to
Italy
, the
oil minister said.
Despite the turmoil,
Libya
,
which holds
Africa
's largest oil reserves, is
trying to attract more foreign investment. A petroleum law, which would dust
off the country's stringent investment terms, is expected to be issued by year
end, Mr. Arousi said.
But the oil minister said Marathon Oil Corp. (MRO) was considering selling its
stake in a Libyan oil joint venture, confirming a report in The Wall Street
Journal. Marathon
had previously declined to comment on the matter.