BP Shelves Onshore Exploration in Libya as Instability GrowsSource: Reuters | 11 March 2014
Oil and gas major BP said it had mothballed plans to explore in Libya’s Ghadames basin because of security concerns, the latest in a series of companies to rethink their projects amid growing instability.
Three years of turmoil since the Arab Spring and tough contract terms have prompted oil firms to reassess their role in Libya, and several have said they would postpone their plans or scrap them altogether.
BP’s exploration and production sharing agreement with Libya covers onshore acreage in Ghadames, near the border between Libya, Algeria, and Tunisia, and offshore acreage in the central Sirte basin.
“With respect to the onshore exploration drilling program, a security review in June concluded that this could not be safely and securely delivered by BP at this time. Alternative approaches are being considered,” BP said in its annual report.