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OIL AND GAS
Optimism high for offshore Senegal
by Daniel J. Graeber
Melbourne (UPI) Jul 28, 2013


Libya issues plea for outside help as violence escalates
Tripoli, Libya (UPI) Jul 28, 2013 - The Libyan government said Monday it needed outside help to control new clashes in the capital, near where several oil storage tankers were hit by rocket fire.

The severity of new clashes in Libya prompted the U.S. State Department to suspend diplomatic activities at its embassy in the Libyan capital. U.S. Secretary of State John Kerry said the precautionary move was made in response to the "free-wheeling militia violence that is taking place in Tripoli."

The Libyan government said Monday it needed outside help to stem the violence in the country. The National Oil Corp. said, meanwhile, it abandoned efforts to control a blaze at a storage depot hit by rocket fire last weekend.

The government said the oil blaze could turn into a "humanitarian and environmental disaster."

Libya was once one of the top oil producers in North Africa, though oil exports and production have faltered since the fall of the regime of Moammar Gadhafi near the end of civil war in 2011.

A deal brokered between the central government in Tripoli and eastern rebels vying for more autonomy prompted interim Prime Minister Abdullah al-Thani to declare in early July that the oil crisis over.

Australian energy company FAR Ltd. said Monday a deep water drilling program slated for Senegal could change the opinion about the country's reserve potential.

FAR, working as a minority partner in a joint venture that includes Cairn Energy and ConocoPhillips, said drilling activity resumed off the coast of Senegal.

"These two wells offshore Senegal have the potential to radically alter the prevailing international view of the hydrocarbon potential of Senegal where no offshore wells have been drilled for more than 20 years," FAR Managing Director Cath Norman said in a statement.

The company said the drilling program will test an area that could contain as much as 1.5 billion barrels of oil reserves.

Cairn in January said frontier basins off the Senegalese and Moroccan coasts were key components of its exploration agenda for 2014.

West Africa has drawn interest from international energy companies eager to tap into unexploited reserves.

"The two well program in the Atlantic margin is being closely monitored by many international oil and gas players because of the large prospect sizes being drilled and the potential for numerous nearby follow up targets in the event of success," Norman said.

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