CETCO Oilfield Services has announced it is in final stage negotiations with an oil and gas services agent to expand its service offering in Libya.
The oilfield services firm was recently on a fact-finding mission in Libya and is now looking to this emerging market as a region with considerable business opportunities for continued expansion.
A country which is emerging from more than 20 years of trade sanctions imposed by the UN and US, Libya is proving to be one of the most attractive options for UK oil and gas companies.
“Key market drivers such as the very active exploration schedule coupled with Libya’s aim to increase daily output from 1.5 million barrels per day to 3 million barrels per day in the next three years was what drew me to Libya as a potential investment region for CETCO Oilfield Services,” explained Euan Morrison, general manager for the oilfield services firm.
“There are numerous opportunities for CETCO Oilfield Services to deliver effective oilfield solutions, particularly in the areas of water treatment and early production systems. Having identified these opportunities, we are now progressing plans for moving into Libya by aligning ourselves with a Libyan oil and gas services agent.”
With oil reserves reported to be sitting at 41.5 billion barrels, the largest in Africa, Libya is a region with huge potential for the oil and gas industry.
Investment in the country has vastly increased as major outlays in new assets from oil and gas companies in the region have risen by 64% from 23 to 36 since 2004. This is in addition to the 13 majors who were already operating in the region prior to sanctions being imposed. Production has also increased by 24% with a 43% rise in licensed acreage.
Speaking about the opportunities that lie ahead, Mr Morrison added: “Our capabilities as a leading global provider of water treatment solutions, as well as our integrated approach to the onshore and offshore petrochemical and refining industries, provides us with a great opportunity to meet the needs of the Libyan market while diversifying our business portfolio even further.”
“The vast amounts of untapped reserves on offer make this region a very viable option for future investment and we have identified and are working alongside an agent to progress the procedures for moving into Libya. This is a potentially lucrative yet entirely new market for CETCO Oilfield Services, so working with an agent specific to our sector could open doors and new contacts to really support our business development drive.”
“Investment in countries such as Libya has to be taken with caution and only after a clear market for the technology, with ample opportunity for good returns, has been identified. As a company, we have achieved some very positive results in regions such as Asia and the Middle East, and we are confident that our oil and gas industry expertise and management skills can be transferred to the Libyan market too.”
“Similarly, we want to give something back to the local community by creating employment and training opportunities for workers in Libya. By investing in people and skills we aim to establish a base in Libya for the long term,” Mr Morrison concluded.