Energy experts are of the opinion that a major chunk of energy reserves in Libya are under explored. It has been reported that Libya would emerge as the most oil rich country in Africa with approximately 44 billion barrels oil reserves. Further they also firmly believe that Libyan gas could fill the UK’s longterm gas shortage and at the same time make it less reliant on Russian gas supplies, reported the newspaper.
As a result, not only the two oil firms but also several others developed interest in signing deals with Libyan oil companies. BP, the UK-based energy company, is already engaged in an oil exploration joint venture and is assessing whether it can further invest in the development of its fields. It has already put out to tender the contracts for well construction and could begin drilling within the next year. A spokesman of BP said: “Our initial investment in the joint venture is $900m but if we find oil investment could rise to $20 billion over the next two decades.”
According to IMF estimates, the hydro carbon industry is responsible for over 90% of tax revenues and accounts for over 70% GDP in Libya but the African nation is depending on foreign countries for expertise and technology. Against this backdrop the BP spokesman added that “Using our technologies we can increase recovery rates threefold. Most of the oil does not sit in a pool at the bottom of a well where it can be sucked out but becomes embodied in the sand and has to be prised out,” reported the newspaper.
