US Occidental Petroleum confident about resuming Libya production

27 October 2011 19:18  [Source: ICIS news]

HOUSTON (ICIS)--Occidental Petroleum is confident about its business in Libya and expects to be able to fully resume oil production there following the end of the country’s internal war, with the killing of former leader Muammar Gaddafi last week, the company’s CEO said on Thursday.

Chief executive Stephen Chazen told analysts during Occidental’s third-quarter results conference call that his company and its partners have begun the process of resuming oil production in Libya.

At this time, Occidental Petroleum does not expect any legal or other problems that could hinder its business in Libya, he said.

Rather, the Occidental expects that the new government will respect its existing contracts from before the war.

“Indications are they [the new Libya regime] are willing and happy to have us come back in and resume where we left off,” he said.

Occidental is sending a management team to Libya this weekend to meet government officials, he added.

Analysts have said that Libya is not likely to return to its pre-war oil production levels until the fourth quarter of 2013.

By: Stefan Baumgarten
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