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| Photo Credit: cbc.ca |
Last weeks attack on the U.S. consulate and a safe house in the eastern city which left the four Americans dead, one of which was the U.S. ambassador to Libya, has heightened fears that there could be delay in the already slow return of expatriates workers to Libya, which in turn is threatening the OPEC producer's future plans to boost output.
Following last year's war which led to the fall of Gaddafi, the country's oil production rose to an all time high like the pre-revolution levels faster than expected, said analysts.
With a government struggling to impose its authority on armed groups who refused to lay down their weapons, expatriate workers are very much concerned, as they believe the situation might worsen, as many foreign oil companies in the region have beefed up their security in cities bristling with weapons and have since restricted staff movements to the barest minimum.
It won't stop production, but those who are looking to exploration may have to re-assess with the increased security risk, said a Western security contractor, staff could be cut down to essential levels and any plans of bringing families back will be further put on hold.
With a country aiming to produce 2 million barrels of oil per day by 2015 ending, the current security challenges could hinder reaching that target, which will also affect its export to Europe as it is responsible for 85% of its market.
In July, political protesters shut down three major oil exporting terminals for 48 hours, with this level of insecurity, disruptions have proven a big challenge to its oil recovery, however stoppages at El-Sider, Ras Lanuf and Brega shut half of Libya's oil exporting capacity and production was also cut by 300,000 barrels per dayas a result of blockages.
Foreign oil companies have stated that their highest priority is safety, following the spate of attacks on western missions and organizations in Benghazi, cradle of Libyan revolt as well as capital of Libya's eastern region where most of the country's oil is produced.
(Edited by: Blueblock)
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