BP Plans Libya Return

BP is making moves to resume exploration in Libya in an area near the last major E&P firm to pick back up its activities in the North African country. The UK-based firm, like so many others, shut down operations and withdrew its workers in February 2011 after the break out of protests.

Companies like ENI, Total, and OMV all had producing assets in Libya which could explain their impetus in returning in a timely manner, but BP had yet to launch a full drilling campaign in the country prior to the civil unrest.

The head of Libya's NOC, Nuri Berruien, and Michael Daly, BP's executive president for exploration, agreed on May 29 to lift the force majeure under which BP suspended its operations last year.

The agreement was a "significant milestone in BP's plans to return to the exploration of onshore and offshore blocks," Daly said in a statement.

A BP spokesman was quoted by Reuters as saying security was going to be "the determining factor on how quickly we move." The company says that it feels the security situation to be manageable now. It is unlikely that the company will actually land back into Libya for a few months.

"At the moment we feel security and safety is sufficiently manageable."

The spokesman said, "The first thing we need to do is re-establish the contracts for drilling and logistics.”

"We need to get contractors back in for the onshore and offshore drilling. Then it's back to work as soon as possible,” he added.