Will the Algeria attack delay exploration in Libya?
The recent attack on the Ain Amenas gas complex in south-east Algeria, which killed some 37 foreign workers, has raised the question of whether oil and gas exploration in neighbouring Libya may be affected.
The Ain Amenas plant is partly owned and operated by BP, which also has rights over two concessions in Libya - one offshore block in the Gulf of Sirte, and another onshore area in the Ghadames basin of western Libya, not far from the Ain Amenas plant, which lies around 60km across the border.
Quoted in a British newspaper last weekend, a BP spokesman said the company had intended to start drilling in Libya in the second half of 2013 but was now "reviewing" its plans in the wake of the Algerian attack and the security situation in Benghazi.
BP originally signed its Libya deals in 2007, but repeated delays and setbacks - including the Gulf of Mexico spill in spring 2010 - meant it had yet to start drilling by the time the Libyan uprising gathered pace in February 2011.
In May 2012 the company lifted a state of force majeure on its operations in Libya, and has since said it planned to drill 17 wells in 2013, subsequently inviting contractors and other energy service firms to register for potential work.
Other energy firms are also planning exploration programmes this year. Indonesia's Medco Energi, which holds rights over the Area 47 concession - also in the Ghadames basin - recently tendered for drilling rigs, as did Canada's Suncor, which is seeking rigs from the third quarter of 2013 for an exploration programme in the Sirte basin.
Security was already a concern in Libya, and is likely to be even more acute in the wake of the Algerian siege, not least because many oilfields are located in remote desert areas in the south of the country. Shortly after the Algeria attack, the Petroleum Facilities Guard (PFG) - which is part of the Ministry of Defence - issued a statement saying it had 'beefed up' security at energy facilities in Libya.
While past exploration results in Libya have been mixed, the country theoretically holds Africa's largest proven oil reserves and increasing output over the medium to long-term will be central to maintaining government spending.
Providing local and foreign companies with the security and confidence to continue exploration programmes - as well as maintain current levels of output - will be vital.


