Libya Faces Oil Rig Shortages, Calls on National Participation in Oil Services

According to Phoenicia Group, the leading U.S.-Libyan diversified business
group, which is a strategic partner to key U.S. and international companies
in Libya, Libya is suffering from an acute shortage of oil drilling and
work over rigs, significantly delaying exploration programs of oil majors
prospecting in the North African country.

Symptomatic of the wider global glut in rig availability, U.S.
newcomers ExxonMobil, Chevron, Occidental Petroleum, and the former Oasis
Group (Marathon Oil, ConocoPhillips, and Amerada Hess) are finding
themselves struggling to secure rigs on schedule for their expanding
operations in the country, from exploring new blocks to revamping existing
unproductive fields.
The demand is translating into high rates for contracted rigs, said
Ryad Sunusi, interim President & CEO of the Phoenicia Group, during a
conference call with investors, analysts, and the media from Tripoli,
elaborating:

“Libya needs at least 40 rigs for the next 10 years to support IOC
exploration programs, and this represents a great opportunity for the
Libyan private sector to get involved, in forming JVs with overseas
drilling and work over contractors, as outlined by GPC Decree 443/2006,” he
noted.

“We intend to capitalize on the opportunities and partner with
international oil services companies to meet the demand, and laud the
Libyan government’s stance in its strong support and confidence in the
Libyan private sector’s capabilities of supporting the national oil
sector.”

PR Newswire