OIL quits Libya amidst rising turmoil in the north African country

Posted By: Religare
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OIL quits Liby
Oil India Ltd (OIL) has decided to quit from Libya amidst increasing conflict where it ran five oil blocks with a partner. Confirming the news, OIL chairman and managing director Nayan Moni Borah said, “Leaving apart the financial losses, I think we must pick on the positives which are very encouraging for us. The entire operation, although it failed to deliver the expected results in terms of commercial viability, was a huge (learning) experience for all of us."

The company had bagged nine blocks in Libya in 2008 through an international bidding and was the lead operator in four of the blocks along with other partners but gave up these fields as it did not find any oil in them. In terms of manpower, OIL"s presence was thin and most of the oilfield laborers were workers from other countries and were brought by contractors.

Commenting on the financial loss to the company due to its decision to quit Libya, OIL spokesperson Jishnu Sarma said, “The financial losses have not been calculated as of now, but it will run into hundreds of crores." Regarding the workers he said, “All the workers were released through their respective contractors after settlement of their financial commitments. After abandonment of the wells, the relinquishing process was on when the crisis broke out."

Read more about: shares, nse, bse, mutual funds, oil and gas
Story first published: Monday, April 25, 2011, 12:32 [IST]
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