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Chinese success in Libya's oil sector

Analysis Materials 14 March 2013 17:19
According to data released by the Libyan National Oil Company as of 2012, one can say that Libya was able to return to pre-conflict oil production volumes and almost the same volume of supplies abroad last year.
Chinese success in Libya's oil sector

Azerbaijan, Baku, March 14 / Trend /

Ellada Khankishiyeva, Trend Analytical Centre head

According to data released by the Libyan National Oil Company as of 2012, one can say that Libya was able to return to pre-conflict oil production volumes and almost the same volume of supplies abroad last year.

According to the report, Libya exported 379.5 million barrels of oil in 2012.

However, as opposed to the previous restored production volumes and black gold export, the equity ratio of the three main importers of Libyan oil has been changed.

In 2010 Libyan oil covered about 30 per cent of Italy's needs, 16 per cent - France -11 per cent - China. In 2012 around 36.8 per cent fell to Italy's share, China - 12 per cent, France - 11 per cent. As one can see, China has firmly ranked second among holders of Libyan oil during a year, forcing France out.

If at first glance harmless numbers are taken easily and quickly, in reality the current percentage of African oil was not easy, taking into account the high quality of Libyan oil which cannot be replaced by raw materials from other countries. China was slowly and persistently moving towards its goal.

When the matter rested in the oil interests of various countries in Libya, China did not create suspicions in this respect and its presence in Libya was connected with the employment of a large army of able-bodied Chinese who were mainly engaged in infrastructure construction.
Chinese oil companies were not among the main beneficiaries of Libyan oil after the uprising. On the contrary, France will have a total advantage in Libyan oil and hold a 35 per cent share for its support for the opposition.

Nevertheless, the credibility towards European companies was undermined. As one knows, oil production in Libya has fallen to its lowest level since the beginning of the rebellion because of the departure of employees of foreign oil companies operating in the country. In particular, British BP, Italian Eni, French Total, Norwegian Statoil and Anglo-Dutch Shell companies stated their temporary reduction in the volume, or the cessation of work on oil and gas extraction in Libya.

The choice was made. In future Libya will be ready to replace Western oil companies for Chinese and Indian.

The leaders of the Libyan National Transitional Council have repeatedly pointed out that they respect and recognise all previously signed contracts with China.

China has assisted the new government in the form of humanitarian supplies and active participation in the post-war restoration of the North African country. The outcome of the mutual recognition was a major contract on oil supplies signed between Libya and China last March.

According to it, Beijing will buy up to 100,000 barrels of crude oil from Tripoli per day. This means Beijing has doubled its imports of Libyan hydrocarbons (48.2 million barrels). The final annual report of the Libyan National Oil Company showed this figure.

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