Oil giant withdraws from Libyan fields

Press, 14 November 1981, Page 8

Oil giant withdraws from Libyan fields

NZPA-Reuter New York The Exxon Corporation, the world's largest oil company. said yesterday it would withdraw from all activities in Libya.

In a statement, Exxon said it had relinquished its concessions by notice to the Libyan Government of Colonel Muammar Gadaffi on November 4. Exxon, which at one time produced as much as 100,000 barrels a day in Libya, has not been purchasing crude oil from the North African nation in recent months, oil industry sources said. Libyan authorities,” the statement from the company’s New York headquarters said, “Exxon’s withdrawal be accomplished in an amicable and orderly manner.

“Discussions are under way with the Libyan authorities on arrangements for such a withdrawal,” it added. The industry sources said Exxon officials had gone to Libya last week to discuss their contract.

The statement did not say whether the company, which is one of the original foreign

producers in Libya and has been operating there since 1955, would receive any compensation for relinquishing its operations. Among the operations was a 49 per cent share in oil fields in partnership with the Libyan Government. It also had a 49 per cent interest in a liquefied natural gas complex which provided gas for export to Europe. Exxon had about 80 American employees in Libya and some 300 nonAmericans, mostly British. Last summer it withdrew dependendants of the American employees. The company yesterday did not reveal whether the decision to withdraw from Libya stemmed from a dispute with Libya over oil production and prices or from political considerations. While the Reagan Administration has not put any public pressure on oil companies to withdraw from Libya, some Congressmen have promoted this view. Several resolutions are pending in the Senate calling for a boycott of Libya’s crude oil

because of Libya's alleged support for terrorism. The Exxon fields in Libya were estimated to produce about 135,000 barrels a day. the sources said. Other American companies operating in Libya include the Occidental Petroleum Corporation, the Mobil Corporation, Marathon Oil Company, and Du Font's Conoco subsidiary. . Occidental, the second largest oil operator in Libya, which pumps about 80.000 barrels a day, said in Los Angeles it had no plans to follow Exxon in withdrawing from that country. “We are not presently considerating that,” an Occidental spokesman said.

Oil-industry sources said that in today’s market, the Libyans might find it difficult to fincf alternative buyers.

Libya lowered its price in October from SUS4O to ?U537.28 but industry officials feel it is still about SUSI too high. Libya produces high-quality, low-sul-phur oil.