Thursday, May 31, 2012

Shell to Exit Libya

While many companies have returned to Libya since the ouster and subsequent death of long-time leader Muammar Qaddafi, one company is exiting, Royal Dutch Shell. Shell is the first company to announce its exit from the North African country.

Shell "intends to suspend and abandon drilled wells and stop exploration in [its] Libyan licenses," a company spokesman said in a Dow Jones Newswires report.

Despite its exit Shell insists that is still interested in the country however, it also said that its exploration results prior to the outbreak of hostilities were less than encouraging. "Results [prior to the war] have been disappointing and further exploration cannot be economically justified," the spokesman said.
The news of Shell’s exit comes at the same time as BP reports that it will resume its exploration activities in the country.

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