“Libya’s new government will remember those who supported it and also those who did not”

PRLog (Press Release) - Aug. 26, 2011 - The Libyan National Transitional Council will undoubtedly favour companies from those countries that have supported it and French and British companies could do particularly well during the country’s economic reconstruction.  This is according to Charles Gurdon who is the Managing Director of the London-based Menas Associates risk consultancy firm.  Gurdon does not, however, think that the new Libyan government will refrain from doing business with countries that failed to support the rebels, such as Russia and China, but that: ”the NTC will undoubtedly reward its closest allies One would think that Britain and France, as principle supporters, would have priority.  But they have also made it clear that they will honour their existing commitments just as all oil companies will also expected to honour their prior commitments and complete their work programmes.”  

Investments in North Africa
Charles Gurdon is part of a high-level oil and gas industry expert line-up for the North Africa Oil & Gas Summit in Madrid in October when, for the first time since the crisis in North Africa, new leaders of regional national oil companies (NOCs) will meet to take stock of the industry in the region.   Some 350 oil and gas industry experts are expected to gather for the event and the agenda includes discussions of new investment potential, the future of LNG exports, and upcoming licensing rounds in the post-Arab spring period.

Libya already less attractive before uprising
According to Gurdon, several IOCs had already pulled out of Libya before the Arab Spring because it was already less commercially attractive than other areas, partly because “very little new oil has been found since 2005 and the NOC was squeezing the IOCs in terms of financial terms and conditions and local content requirements”.  

Low gas prices
He continues:  “The shale gas revolution in the US has fundamentally changed the international gas market with both gas demand and spot prices falling very sharply. The North African governments are now operating in a much more competitive environment than they were a few years ago. At the same time the recession has hit oil demand in Europe. While Egypt and Tunisia have recognized this, and have adopted a much more flexible approach, others such as Algeria and Libya have not. They will be unable to re-attract foreign investors unless their make the commercial terms and conditions far more attractive. If they don’t the herd will move elsewhere”  

More speaker highlights at North Africa Oil & Gas Summit include:
•  Nemesio Fernandez Cuesta, Executive Vice President Exploration & Production, Repsol
•  Mohamed Ould Bahiya, General Manager, Societe Mauritanienne des Hydrocarbures (SMH)
•  Jean Francois Arrighi de Casanova, Senior Vice President North Africa E&P, Total SA
•  Gerald R. Winkler, General Manager – North Africa & Offshore, OMV Exploration & Production GMBH
•  Zalmay Khalilzad, Former US Ambassador to the UN, IRAQ AND AFGHANISTAN, Counselor at the Center for Strategic and International Studies
•  Senior Executive, Entreprise Tunisienne D’activités Pétroliéres (ETAP)

Key sessions at the Summit include:
•  Possible scenarios for re-entering the Libyan market and reviving Libyan infrastructure  
•  Overview of the upcoming licensing rounds-country focus
•  Operational challenges, safety and risk management in North Africa
•  The latest updates on the field developments – cutting-edge technology show cases to unlock North African potential
•  Future of  global LNG export
•  Shale gas and hydrocarbon potential-future investments

Event dates:
25 October:  Shale and tight gas workshop
26-27 October:  Conference
Event location:  Hotel Melia Castilla, located near to the Paseo de la Castellana, Madrid
Event website:  www.northafricasummit.com

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