Full return of Libyan oil to ease global pressure

Libya's oil exports are set to return to full pre-war levels by April this year, beating even the most optimistic estimates and potentially easing a global shortfall of oil caused by outages and conflicts.

Libya plans to export almost 1.4 million barrels of oil per day (bpd) in April, a senior National Oil Corp (NOC) official said. At that level, its exports will exceed deliveries in February 2011 before the uprising that ousted Muammar Gaddafi began.

The rapid surge in flows, chiefly to importers in the Mediterranean, may ease pressure on global markets caused by conflicts in several oil producing countries as well as the loss of Iranian oil in July when Western sanctions kick in.

European refiners are struggling to cope as these supply problems have pushed Brent crude up by more than 17 percent since the start of the year to a high of $126.05 a barrel on Monday.

In post-war Libya, Italy remains Libya's biggest oil trading partner, accounting for almost a third of its total exports.

But Libya's second-biggest oil export destination for the year is now China, which has accounted for around 17 percent of total exports since the start of the year, NOC data shows. -

Source: Reuters

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Verenex investors await Libyan counter bid

Investors in Canada's Verenex Energy Inc. said on Wednesday they saw growing risks of delays in the $C499 million ($425 million) sale of the company to China or Libya.

Libya has said it will exercise its right to pre-empt a friendly C$10-a-share bid for Verenex from China National Petroleum Corp (CNPC) but Verenex in its earnings release on Tuesday said Libya had yet to make a formal offer.

Shares of Verenex were trading little changed at C$9.16 on Wednesday, indicating investors still expect a sale to happen. But some are uneasy over the lack of a formal bid from Libya, or word on Libya's consent to China's offer.

"The best thing is either the Libyan government says yes to the Chinese, or the Libyan government agrees to buy it on the same terms," a Verenex shareholder who declined to be identified said on Wednesday.

"But we have to be prepared for a situation where the downside occurs and Verenex goes back to a much lower price if it doesn't happen.

Source: Reuters