Schlumberger, a major oilfield services company, has announced the suspension of its operations in Libya’s oil fields starting from July 1st. This decision is pending the settlement of outstanding payments and debts, which have exceeded $242 million.
In a letter addressed to the Chairman of the National Oil Corporation (NOC), Farhat Bengdara, Schlumberger expressed its severe financial difficulties due to the cumulative debts owed by its subsidiaries operating in Libya. These subsidiaries include Schlumberger Overseas, Dowell Schlumberger, and Anadrill International.
The company highlighted that the current outstanding debts to its subsidiaries in Libya have reached an unprecedented level, now standing at over $242 million. These debts are spread across 13 NOC-affiliated oil companies and the Libyan Petroleum Institute.
Schlumberger emphasized the critical financial strain caused by these unpaid dues, necessitating the suspension of its operations. The company urged for an immediate resolution to the financial issues to resume its services and maintain its operations in Libya.
This development poses a significant challenge to Libya’s oil industry, potentially affecting production and operations across multiple oil fields. The suspension could lead to delays and disruptions, impacting the country’s oil output and economic stability.
The NOC and affiliated companies are now under pressure to address these financial obligations to ensure the continuation of essential oilfield services provided by Schlumberger.
In July 2023, Schlumberger won a subcontract to drill three oil wells in Libya, according to Libya’s National Oil Corporation (NOC).
Under the agreement, Schlumberger will provide the necessary support to NOC’s subsidiary the National Company for Oil Wells Drilling and Maintenance. This is to drill three wells for the Remas Company, in the Nasr and Wahat fields.
Remas Libya for Oil Services (RLS), a Libyan company with its main office located in Tripoli.
The signing ceremony took place at the NOC headquarters in Tripoli, in the presence of officials from Schlumberger and the National Company for Oil Wells Drilling and Maintenance.
Hussein Safar, a board member of the NOC, described the signing as “an important step towards developing Libya’s oil sector.” He emphasized the NOC’s commitment to “strengthening cooperation with international companies in order to increase production, and improve operational efficiency.”
In turn, Mustafa Ajaj, the General Manager of Schlumberger’s Libya branch, expressed his satisfaction with the cooperation agreement. He confirmed that Schlumberger “has the technical expertise and capabilities to contribute to increasing production from Libya’s oil fields.”
The deal marks a significant development for Libya’s oil sector, which has been struggling to recover from years of conflict and political instability.
