Libya Oil Exports Resume from Brega

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Libya Oil Exports Resume from Brega
Released:  27/08/20132013-08-27
Word count:  220

Oil exports from the Libyan port of Marsa al Brega have resumed after a force majeure was lifted as protesters ended their blockade of the terminal, the deputy oil minister said Monday.

Nasdaq
"A few tankers have left the port after we lifted the force majeure on Aug. 22," Omar Shakmak told Dow Jones Newswires. "The port is now operating as normal and at full capacity," he said. Brega, with a capacity of around 90,000 barrels a day, is one of the four ports affected by the force majeure, declared after protests caused the facilities to be shut at the end of July, as workers demanded the payment of wages, as well as higher salaries or more jobs. However, officials said the situation was more precarious, with armed guards trying to sell oil without government approval.

The strikes in eastern and central Libyan ports had effectively shut down shipments from terminals there, which account for more than half of Libya's$60 billion of oil exports annually.

Es Sider, the largest of Libya's oil terminals with a 350,000 barrel-a-day capacity, as well as Ras Lanuf and Zueitina in eastern Libya remain closed. Storage facilities in the country, a member of the Organization of the Petroleum Exporting Countries, have filled with crude, crimping any new production. According to data supplied by the oil ministry, Libya's output fell in the first half of August to about 500,000 barrels a day -- about one-third of the highs reached last summer and the lowest since just after Libya's civil war ended in late 2011.
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Oil & Gas News
Released:  02/04/20152015-04-02
Word count:  357

(Reuters) - Oil prices fell on Thursday as attention returned to nuclear talks with Iran, with the prospects for a deal and an increase in Iranian crude exports helping to keep pressure on prices.

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Reuters
Major powers and Iran have stretched talks on Tehran's nuclear program into a second day past an end-March deadline, with diplomats saying prospects for a preliminary deal were balanced between success and collapse in the coming hours.

Both Brent and U.S crude prices snapped three-session losing streaks on Wednesday, gaining $2 or more after data from the Energy Information Administration (EIA) showed a fall in rigs drilling for oil resulted in a drop in U.S. output last week for the first time since late-December.

Brent crude for May delivery LCOc1 was down 37 cents at $56.73 a barrel by 0408 GMT. The contract had settled $1.99 higher on Wednesday.

U.S. crude for May delivery CLc1 was down 50 cents at $49.59 a barrel, after closing up $2.49, or 5.2 percent.

In the Swiss city of Lausanne, U.S. Secretary of State John Kerry and German Foreign Minister Frank-Walter Steinmeier said they would stay at least until Thursday in an effort to seal a "political" agreement with Iran, a step towards a final pact due by end-June that could release more oil on to global markets.

Optimism for an agreement is thin among many analysts.

"(I expect) nothing beyond a general statement of intentions to keep talks going through spring," professor Scott Lucas of EA WorldView, a specialist website on Iran and Syria, told Reuters Global Oil Forum.

Despite U.S. production falling for the first time since late December, crude inventories still rose last week to a record high for the 12th straight week.

"Slower growth in inventories is signaling that production is finally catching up to the recent decline in the U.S. rig count," analysts at ANZ said in a note.

The EIA pegged the U.S. crude stock build last week at 4.8 million barrels, while analysts polled by Reuters had expected a 4.2-million-barrel build on average. [EIA/S] [API/S]

Oil prices were also supported on Wednesday as the dollar was pulled lower by fresh signs that U.S. economic growth slowed in the first quarter. Commodities denominated in dollars, such as oil, become more attractive to holders of other currencies when the greenback weakens. [USD/]

(Editing by Tom Hogue)
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News Releases

News Releases
Released:  02/04/20152015-04-02
Word count:  173

Prime Minister Abdullah Thinni has revealed that his government has been working with a bank loan and that the 2015 proposed budget is for LD 44 bn.

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Libya herald
Speaking in a wide-ranging interview with Alhadath News, Thinni defended his government against accusations of not giving value for money, for being ineffective and even of misappropriation of public funds.

The total budget was an LD 750 million loan from the National Commercial Bank (NCB) of which LD 250 million have been spent and LD 500 million remain which we are spending now, Thinni explained further.

That is the budget for 6 months and anybody who says otherwise should please feel free to come forward with any evidence, he said. We have been promised another LD 250 million to bring the total budget to LD 1 billion, he added.

About LD 250 million has been spent on the running expenses of the Ministries to meet their needs and within the current circumstances. Some Ministries received LD 5 million whilst others received LD 15 million.

The Ministries that have received the most money have been Health, Interior and Defence. Everything is documented and the LD 44 billion 2015 budget proposal has now been forwarded to the House of Representatives for approval, explained the Prime Minister.
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Business News

Business News

Mellitah Oil & Gas - Tender No789 - Rental of Forklifts and Cranes for Abusetta Marine Base and Company Warehouses.

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NOC

Mellitah Oil & Gas Company (Oil Division), intends to issue the below tender and wish to invite for pre-qualification interested, experienced and reputable Companies specialized in providing similar services stated below to submit all requirements for inclusion in the bidders list to be invited to participate in the following tender:

TENDER NO. (789)

Rental of Forklifts and Cranes for Abusetta Marine Base and Company Warehouses.

Scope of Work:

•             The company intends to hire Cranes and Forklifts fully certified by recognized body for cargo handling in Abusetta base –Tripoli.

•             The Contractor shall adhere to standard specifications and technical requirements, which include on the scope of work.

•             The Contractor shall also abide Company operation policy, standards, government regulations and industry practices whereby applicable.

QUALIFICATION REQUIREMENTS:

Interested companies for the above tender must satisfy the stipulated requirements and submit the required information below. Failure to submit any of the under listed documents will render automatic disqualification:

1- Letter on Company's letterhead Addressed to the "Contracts Dept. Manager - Oil Division" stating expression of interest on the respective tender.

2-   Copy of valid Company Registration in Libya, if already registered, or details of Branch Office, for the foreign Companies.

3- Company Profile with full details of similar contracts performed with relevant and verifiable Reference List of Clients where the works had been undertaken, literature/catalogue of the entire range of the work/service/equipment and any additional information that will enhance the potential of the applicant /consortium.

4- Two copies of the Prequalification Documents containing the above stated requirements shall be submitted in a sealed envelopes and marked.

5- Mellitah Oil & Gas has the right to exclude any submission which does not meet the above stipulated requirements

TENDER NO.TN (789)

Rental of Forklifts and Cranes for Abusetta Marine Base and Company Warehouses

Address to the  following address:

 (Contracts Department Manager-Oil Division)

Millitah Oil & Gas Company ( Oil Devision)

Dahra Kebira P.O. Box 346,

Tripoli –Libya

Electronic copy shall be submitted through email

PRE-Q@MELLITAHOG.LY

 6- The prequalifcation documents shall be  submitted not later than 8/4/ 2015.

Important Notes

•             The pre qualification request is not an invitation to tender. Company is neither committed nor obligated to undertake the work described above or to issue any call for tender or to include any respondent to this invitation or other company on any Bidders List or to award any form of contract.

•             The Invitation to Tender (ITT) Package will only be issued to qualified companies that have been pre-qualified.

•             Company will not be responsible for whatsoever costs incurred for preparation and submission presented in response to this notice.

•             Company shall deal only with authorized officers of the bidding companies and not through individuals or agents.

•             Company shall not consider any pre-qualification request all the Conditions been provided as resolution 207 ), 2012) from the economic minister. 

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Oil & Gas News

Oil & Gas News
Released:  01/04/20152015-04-01
Word count:  259

(Reuters) - Libya two biggest oil ports, Ras Lanuf and Es Sider, will be able to open once security checks are made as forces backing the country's rival government have left the area after months of fighting, a National Oil Company (NOC) official said on Tuesday.

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Reuters
The two ports, which can handle a combined 600,000 barrels a day, are under the control of forces loyal to the internationally recognized government based in the east.

"The two ports will open soon, after making security and safety checks in the area and the ports" said Elmabruk Bosaif, the head of the NOC in Tobruk said.

The NOC in the capital Tripoli, which has been under the control of forces loyal to Libya's rival government since last year, was not immediately available for comment.

The ports were closed in December when fighting broke out between forces loyal to Libya's internationally recognized government and to Libya Dawn.

The region south of the ports is home to several oilfields that were attacked in recent weeks by fighters loyal to the militant group Islamic State.

Tripoli-based government forces last week moved out from camps west of Es Sider to tackle a growing threat from Islamic State in Sirte.

The United Nations Support Mission in Libya (UNSMIL), which is holding peace talks between Libya's warring factions, welcomed the ceasefire and forces withdrawal from the ports area.

"The Mission is inviting the parties to a meeting soon to continue the negotiations, which include interim security arrangements for the oil facilities," a statement from UNSMIL said on Tuesday.

The United Nations said last week, at the end of the fourth round of peace talks, that Libyan parties needed more time to agree on a unity government which could end the chaos in the North African country.

(writing by Aziz El Yaakoubi; editing by Jason Neely)

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Oil & Gas News

Oil & Gas News
Released:  31/03/20152015-03-31
Word count:  39

(Reuters) - Libya's oil production is currently 564,000 barrels per day, a spokesman for the National Oil Corp (NOC) of Libya said.

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Reuters
"We expect oil output to rise in the coming days," Mohamed El Harari said, adding that Libya's natural gas production stood at more than 2 billion cubic feet.

(Reporting by Feras Bosalum, writing by Ulf Laessing; editing by Jason Neely)
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News Releases

News Releases
Released:  30/03/20152015-03-30
Word count:  308

Libyan crude oil exports are up to 622,000 bpd according to NOC figures just released. The figure may surprise some analysts.

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Libya herald
Only six weeks ago overall production had plunged to less than 275,000 barrels per day, following attacks oil fields, pipelines and the Sidra and Ras Lanouf export terminals.

The Italian giant Eni is understood to be producing some 250,000 barrels of oil and gas equivalent through its fields El Fil and Wafa in the south west Libya, pumped to Mellitah port in the north west. Meanwhile, some 71,000 bpd is being produced by Sirte Company.

“In addition, Agoco is currently producing some 290,000 bpd,” Omran Al-Zuwai Agoco spokesman told the Libya Herald.

Agoco the fully-owned to the NOC operates most eastern oilfields and Tobruk’s Hariga export terminal in the east. It also operates Al-Beida, Um Al-Froud and North Sabah fields in central Libya and the Hamada field in the south-west.

“Agoco is keeping this current production rate at the moment” Al-Zuwai explains. While the export figures are an improvement on recent lows, they are still well below the 1.9 million bpd peak reached after the 2011 revolution.

The collapse in Libyan crude oil production due to the political and military division has coincided with a plunge in international crude oil prices.

This has had a calamitous effect on the Libyan economy leading to austerity measures both the government in Beida and the antigovernment in Tripoli have struggled to pay the likes of salaries and overseas student scholarships.

All major development and project work has been suspended more or less since the 2011 revolution. Meanwhile the collapse in oil revenues has led to a major depletion of foreign currency reserves and is threatening to lead to the devaluation of the Libyan dinar.

The Libyan dinar is currently trading at around LD 1.95 to the dollar in the black market, or around 50 percent lower than the official exchange rate – a fact that has raised the prices of imports and depleted the purchasing power of the Libyan consumer.
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Oil & Gas News

Oil & Gas News
Released:  30/03/20152015-03-30
Word count:  245

(Reuters) - A tanker bound for Italy was loading 600,000 barrels of oil at the Libyan port of Hariga on Sunday, an oil official said, the eighth loading at the eastern terminal this month as exports continue despite fights between armed factions.

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Reuters
Another tanker, also bound for Italy, lifted 130,000 barrels of oil on Wednesday at the Zueitina port, which is also located in the east of the OPEC member country, a second oil official said.

Rising exports from the ports of Hariga and Zueitina offer some hope for Libya's oil sector, which has been battered by Islamist militant attacks and fighting between rival factions.

Zueitina port does not expect any new tankers in the next few days, one of the oil officials said, adding that bad weather would make docking impossible.

A number of major oilfields have stopped working due to the struggle between the recognized government in the east and a rival administration that took control of the capital Tripoli in August 2014.

Even so, Libya's oil output has risen to 622,000 barrels per day, a production report by state firm NOC showed on Friday.

Mashallah al-Zwai, the oil minister of the rival government controlling Tripoli, put output at 528,000 bpd, a state news agency said on Sunday.

The emergence of militants aligned with Islamic State have also hit Libya's oil industry. Up to 10 foreign workers are missing after an attack this month on the al-Ghani oilfield by militants loyal to Islamic State.

Militants have also attacked and damaged several oilfields around al-Ghani, forcing the government to declare force majeure, pull out workers and shut down production at 11 oilfields in the central Sirte basin.

(Reporting by Ayman al-Warfalli and Ahmed Elumami; Writing by Ulf Laessing; editing by Jane Baird)  
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Oil & Gas News

Oil & Gas News
Released:  27/03/20152015-03-27
Word count:  375

(Reuters) - Oil prices fell over a percentage point on Friday as traders estimated that the threat of a disruption to world crude supplies from Saudi Arabia-led air strikes in Yemen was low.

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Reuters
Goldman Sachs said in an overnight note that the strikes in Yemen would have little effect on oil supplies as the country was only a small crude exporter and tankers could avoid passing its waters to reach their ports of destination.

Internationally traded Brent crude futures LCOc1 were trading at $58.44 a barrel at 0211 GMT, down 75 cents from their last settlement. U.S. crude CLc1 was down 88 cents at $50.55 a barrel.

Prices soared as much as 6 percent the previous day after a Saudi-led coalition of Arab nations began strikes on Shi'ite Houthis and allied army units who have taken over much of Yemen and seek to oust President Abd-Rabbu Mansour Hadi.

"While Yemen is a small producer (145,000 barrels per day in 2014), the price rally is driven by fears of potential escalation and the proximity of the Bab el-Mandeb strait," Goldman said.

Closure of the strait could affect 3.8 million barrels a day of crude and product flows, but analysts said tankers could be diverted to travel around Africa instead of passing Yemen.

"At the moment, the fighting is located in the central part of the country around the capital of Sanaa. Even if fighting did progress south and potentially threaten tankers moving through the Bab el-Mandeb Strait, they could simply take the longer route around Africa," ANZ bank said on Friday.

Analysts also said that the less than 40 km narrow strait between Yemen and Djibouti was heavily militarized by the West, with the United States and France both operating bases in Djibouti and NATO and other allies having a fleet presence in the Gulf of Aden to combat piracy.

ANZ said that a bigger impact from the Middle East on oil prices might come from a potential nuclear deal with Iran, which could result in a loosening of western sanctions against Tehran and rising exports of its oil reserves. "With potentially 30 million barrels stored offshore, it (Iran) could quickly flood an already saturated oil market," ANZ said.

Goldman and ANZ both noted that any nuclear deal with Iran was unlikely to lead to higher Iranian oil exports before the second half of the year.

"However Brent oil would likely lose its recent risk premium and fall back to the mid-50s," ANZ said.

(Editing by Richard Pullin)  
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News Releases

News Releases
Released:  27/03/20152015-03-27
Word count:  26

Fayout for Travel and Tourism announced that it has made an agreement with Afriqiyah Airlines to offer flights between Ghat and Djanet, Algeria.

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Libya herald
This service will start next month, subject to agreement from the Algerian government.

Fayout also has Umrah flights between Ghat and Saudi Arabia using Afriqiyah Airlines.
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Business News

Business News
Released:  27/03/20152015-03-27
Word count:  529

“The Corinthia five-star hotel in Tripoli is still open with minimal maintenance work being carried out by our skeleton staff, but we are not operating because there is no business at the moment,” Alfred Pisani, the founder of the Corinthia Group and the Chairman and Chief Executive Officer since the incorporation of CPHCL in 1966, said.

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Malta Independent
When asked during an extended interview if all Maltese employees who worked at the Corinthia Hotel Tripoli returned home, he said that the majority did but there are others who are so loyal to the hotel that they decided to stay. He stated that “we also kept a number of employees working with us so that the hotel will continue to run smoothly.”

In January, the Corinthia Hotel in Tripoli was the target of a terrorist attack in which nine people were killed including five foreigners. Gunmen had stormed the Corinthia Hotel and opened fire in the reception area. A car bomb also exploded nearby.

The terrorist attack on the hotel took us all by surprise, Mr Pisani said. “The infrastructural damages were minimal, in fact all the necessary repairs have been carried out, but the biggest pain was the loss of lives.”

Asked if he is thinking of closing down his hotel because of the instability that exists in Libya, Mr Pisani, without any hesitation replied, “No”. In addition he said that the rented apartments are still operating and in full swing and the company continues to derive profits from them; however, any income from the hotel has now evaporated.

Speaking about the situation in Libya, Mr Pisani said that the Libyan people deserve much better than what is taking place. As a nation they need to discuss and find solutions and look at their future and be willing to see their own country move forward.

Mr Pisani said that “Libya has a good geographical position, with comfortable temperatures also in winter, they have beautiful beaches, the desert and natural minerals,” which means that the country could prosper in peaceful times.

He added that “we all hope that Libya reaches a peaceful solution today before tomorrow so that they will focus on their future and that of their children.”

Mr Pisani is convinced that once an agreement is reached between all political factions business will once again flock to the country.

In Tripoli the group does not only have five-star hotel but also offices which it rents out for oil companies.

Palm City

Another investment in Libya by the same group is Palm City in Janzour. The Palm City Residences project is a 408-unit development located close to the Libyan capital, Tripoli, occupying a 133,824 square metre area on a kilometre-long shorefront. It opened in 2008 and provides residents with high standards of accommodation.

Asked if it has been affected by the conflict in Libya, Mr Pisani replied that before the Gaddafi revolution the project was doing very well. It had a dip during the revolution but by the end of 2012 everything went back to normal and “both the hotel and Palm City were full within three months.”

As from last July even Palm City saw a decrease in the number of residents and at the moment 70% of the property is rented. He added that, “although faced with this situation the group will make a profit (from Palm City) by the end of the year but not as much as the previous years.” An extended interview with Mr Pisani will appear in next Sunday’s The Malta Independent on Sunday.  
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Oil & Gas News

Oil & Gas News
Released:  26/03/20152015-03-26
Word count:  452

(Reuters) - Brent crude oil prices shot up nearly 6 percent on Thursday after Saudi Arabia and its Gulf Arab allies began a military operation in Yemen, although Asian importers said they were not immediately worried about supply disruptions.

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Reuters
The strike against Houthi rebels, who have driven the president from Yemen's capital Sanaa, could stoke concerns about the security of oil shipments from the Middle East.

Oil prices jumped as traders and importers said they were worried the Saudi attack was a sign that fighting in the oil-rich Middle East was spreading and out of control.

Brent crude oil futures LCOc1 rose as high as $59.71 a barrel, up almost 6 percent since their last settlement, before dipping back to $57.80 a barrel at 0402 GMT, still up $1.32. U.S. crude CLc1 was up $1.64 at $50.85 a barrel.

The risk from the attack in Yemen was heightened because the Houthis have received some support from Iran, Saudi Arabia's long-time rival for dominance in the Middle East.

"The Saudis have taken military action because they have said the Houthis are getting support from the Iranians," said Li Guofu, director of the Centre for Middle East Studies at the China Institute of International Studies. "This is an indication that the war may gradually spread into a regional conflict. This is something the Chinese government is very much concerned about," he said.

Beyond oil, the Middle East is also the world's biggest exporter of liquefied natural gas (LNG) via Qatar and Yemen, but importers said they were not immediately concerned.

"Gas supply from Yemen has no disruption so far. We are not concerned given the supply surplus and weak demand currently," said Lee Sang-wook, spokesman at state-run Korea Gas Corp.

Like oil, LNG prices have fallen by more than half in the last 10 months as surging output has been met with slowing economic growth, especially in Asia.

Still, with the global crude glut built up from U.S. shale oil and strong output from producers such as Russia, there is little immediate worry about any shortages developing.

"Just because Saudi and others conducted air strikes doesn't mean the oil market becomes suddenly tight," said Masaki Suematsu, manager of the energy team at brokerage Newedge Japan in Tokyo, although he cautioned that the conflict could spiral further beyond the airstrikes.

Asian officials also said the fighting occurred near the Red Sea, waters that Arab Gulf supplies do not pass on their way to Asia. European importers may be more concerned as Arab producers have to ship oil past Yemen's coastlines via the Gulf of Aden to get to the Suez Canal.

The waters between Yemen and Djibouti, at less than 40 kms (25 miles) wide, are considered a "chokepoint" to global oil supplies by the U.S. Energy Information Administration and the region is heavily militarized by western navies.

(Additional reporting by Osamu Tsukimori in Tokyo, Meeyoung Cho in Seoul, and Florence Tan in Singapore; Editing by Richard Pullin and Tom Hogue)  

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Business News

Business News
Released:  26/03/20152015-03-26
Word count:  335

Representatives of municipal and local councils from a number of towns and cities from across Libya gathered in Brussels, Belgium, on Monday 23 March 2015 for a two-day meeting convened by UNSMIL and generously hosted by the European Union.

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Libya business news
The meeting, part of ongoing discussions taking place within the framework of the Libyan dialogue process, was opened by the High Representative of the European Union for Foreign Affairs and Security Policy, and Vice-President of the Commission, Federica Mogherini, and by the Special Representative of the Secretary-General for Libya, Bernardino Leon.

The meeting included 31 participants from municipal and local councils and built on the work on confidence-building measures that were agreed on in an earlier meeting in Geneva.

At the opening session on Monday 23 March 2015, Special Representative of the Secretary-General Leon briefed the participants on the progress made at the main political dialogue talks taking place this week in Morocco. High Representative Mogherini also addressed the opening session.

The meeting dealt with a number of issues, including the humanitarian challenges faced by the municipal and local councils and ways for the UN to enhance its provision of humanitarian assistance; progress on releasing detainees and addressing the situation of missing persons; the situation of the internally displaced and Libyans abroad; and improvements in the functioning of airports and air traffic.

At the end of the meeting, representatives of the Libyan municipal and local councils agreed to:

• Support the ongoing Libyan political dialogue in Morocco and the need to urgently establish a government of national concord;

• Call for a ceasefire, including an end to airstrikes and other attacks on civilians facilities;

• Condemn and fight terrorism in all its forms;

• Call for the withdrawal of armed groups from all Libyan towns;

• Call for the full reopening of civilian airports and airspace in Libya;

• Condemn incitement to hatred and violence in the media;

• Call for the full respect of the rights of detainees and the clarification of the fate of missing persons;

• Call for the return of refugees and commit to the return of all internally displaced people by 31 December 2015;

• Establish a coordination and information exchange mechanism to improve the UN humanitarian response;

• Call for full access to humanitarian assistance;

• Enhance the participation of women in the political dialogue.  
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Oil & Gas News

Oil & Gas News
Released:  25/03/20152015-03-25
Word count:  196

(Reuters) - Crude futures dipped slightly on Wednesday as ballooning U.S. storage volumes continued to pressure prices although relatively healthy demand figures from Europe supported prices.

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Reuters
Brent oil futures LCOc1 were trading at $55.09 a barrel at 0354 GMT, down two cents, while U.S. WTI crude CLc1 was at $47.40 a barrel, down 11 cents.

Strengthening European manufacturing data - and the implication of greater energy demand - lent prices some support even as the expectation of further stock builds in the United States weighed on oil markets.

"Another week, another record U.S. commercial stock level," said U.S.-based PIRA Energy.

A poll of eight analysts - taken ahead of weekly reports from industry group the American Petroleum Institute (API) and the U.S. Energy Information Administration (EIA) - forecast a crude stock build of 5.1 million barrels on average last week. [EIA/S] [API/S]

The API report on Tuesday showed a slightly smaller build in U.S. crude stocks at 4.8 million barrels for last week. Any build from the more closely watched EIA figures due out later on Wednesday would confirm U.S. crude stockpiles have hit a record for the eleventh straight week.

In Japan, commercial weekly crude stocks were down 2.8 percent to 82.87 million barrels. The year-on-year change was a drop of nearly 8 percent.

(Editing by Joseph Radford and Tom Hogue)  
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Oil & Gas News

Oil & Gas News
Released:  25/03/20152015-03-25
Word count:  397

(Reuters) - Stronger-than-expected global oil demand should help support crude prices at around $55-$60 a barrel in the next two months despite some signs of a growing glut in the United States,‎ a senior Gulf OPEC delegate told Reuters on Tuesday.

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Reuters
The comments appear to counter some market forecasts that the U.S. oil glut may push prices to as low as $20-$30 and are a sign that the core Gulf OPEC members remain confident about their strategy of defending market share.

"Global demand is definitely growing much stronger than expected. In December, January, and especially February ‎it was beyond what forecasts anticipated," the delegate said.

Low oil prices may have encouraged demand to pick up particularly in the United States but also in Asia, the Gulf delegate, who declined to be identified, added.

Oil prices are expected to fluctuate around $55-$60 a barrel through April, when they may come under pressure because of seasonal refinery maintenance and rising stocks in the United States, the Gulf OPEC delegate said.

International benchmark Brent crude LCOc1 was trading above $55 on Tuesday.

Underlining brimming U.S. supplies, crude stocks rose nearly three times as much as expected, as storage at the Cushing, Oklahoma oil hub reached a new record, a government report showed last week.

"There are still uncertainties, prices will stay fluctuating around 55-60 dollars," the delegate said.

"If you look at the U.S., it's really tough, stockpiling is rising. But if you look at the international market, stocks are on the higher side but they are still within the five-year average."

Saudi Arabian Oil Minister Ali al-Naimi said on Sunday the top oil-exporting country is producing around 10 million barrels per day (bpd), indicating higher demand is helping the kingdom claw back market share.

The Gulf OPEC delegate said rising production reflects increasing exports to meet global demand as well as growing local needs.

"Increased production is due to two reasons: sales for the international market reflecting stronger demand from customers, not anything else, and local needs with the new refineries online," the Gulf delegate said. Saudi Arabia tends to raise production in the summer months, when the kingdom uses more crude in local power plants to meet air-conditioning needs.

Official data showed Saudi crude exports rose in January to 7.474 million bpd, the highest since at least April 2014, while volumes refined domestically remained high.

Saudi Arabia was the driving force behind November's refusal by the Organization of the Petroleum Exporting Countries to prop up prices by cutting output alone, in a bid to boost demand and defend market share from rival suppliers.

(Editing by Alex Lawler and Dale Hudson)  
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Business News

Business News
Released:  25/03/20152015-03-25
Word count:  536

Revenue for year 2014 amounted to €32.4 million (2013: €6.9 million). This represents an increase of €25.5 million compared to 2013. The significant rate of growth is attributable to the commencement of oil major drilling contracts awarded during the year.

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Malta today
Revenue included €8 million relating to low margin business which had a lesser beneficial effect on profit margins.

The Group‟s operating profit before depreciation amounted to €5,782,866 (2013: €902,402). After charging depreciation amounting to €1,661,765

(2013: €503,117) and net finance costs amounting to €1,077,086 (2013: €267,346), the Group registered a profit before tax of €3,044,015 (2013: €131,939). Profit after accounting for taxation amounted to €2,185,897(2013: €394,333).

The Group completed the construction of its base at the port of Larnaca and started providing support services to ENI Cyprus, as scheduled, on 1 June 2014.

The contracts referred to above led to both the Malta and Cyprus bases working at full capacity throughout the second half of the year.

During 2014, Medserv p.l.c. issued another tranche of bonds amounting to €7 million carrying a coupon of 6% per annum to supplement the first tranche of €13 million issued in 2013. The total funds raised amounting to €20 million have enabled the Group to complete its investment programme. In the year under review this included the completion of a new 8,000 square metre warehouse which is now fully utilized. In addition, an investment of €3.5 million was made in specialised containers, most of which are now on hire to clients in Malta and Cyprus.

Further expansion and investment took place at the Hal Far site that now extends to 43,000 square metres, the vast majority of which is already fully utilised and earning storage fees from clients.

This has resulted in the Malta base having a total foot print of 98,000 square metres. The solar farm suspended on the roofs of the Medserv base has been completed and went on line in July 2014. This is expected to yield an average of 2 MWp of electricity annually over the next twenty years.

State of affairs

Group total assets at reporting date stood at €80,836,394 (restated 2013: €58,909,455).

The group‟s short term liquidity position as at 31 December 2014 was 1.2:1 (restated 2013: 4.2:1).

The current assets as at 31 December 2013included cash and cash equivalents raised by the note issue that awaited their investment.

During the reporting year, Medserv p.l.c. issued tranche two of notes amounting to €7,105,000 the purpose of which was to finance the capital projects completed during the year.

During 2014, the Group changed its accounting policy on the recognition and measurement of an emphyteutical grant over industrial property forming part of the Malta Freeport at the Port of Marsaxlokk.

Until 31 December 2013, the Group had been recognising the property rights conferred by virtue of the said grant as an operating lease and measuring these rights at a nominal amount in accordance with International Financial Reporting Standards (IFRS).

On 31 December 2014, the Group elected to recognise the property rights and the grant at fair value, also in accordance with IFRS.

As a result, deferred income and an equivalent non-monetary asset (referred to as, prepaid operating lease) were initially recognised at fair value and subsequently recognised in profit or loss on a systematic basis over the useful life of the asset using the income approach.

The fair value of the non-monetary asset and related deferred income were determined with reference to the valuation of the underlying property rights by an independent professional valuer as at 31 December 2012.

The Group applied the change in accounting policy retrospectively and restated the comparative periods to recognise the fair value of the property rights as at grant date.
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News Releases

News Releases
Released:  24/03/20152015-03-24
Word count:  272

BENGHAZI, Libya, March 23 (Reuters) - Three tankers plan to lift 1.7 million barrels of crude from ports in eastern Libya this week, oil officials said on Monday, giving hope to the battered energy sector in the North African country.

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The OPEC member state's oil sector has been hit by Islamist militant attacks and fighting between rival factions that has shut down major fields. But it recently managed to resume production at two western fields while keeping output steady at around 490,000 barrels per day.

Output from four fields including Sarir, the country's largest, has reached 290,000 bpd, said a spokesman for state firm Arabian Gulf Oil Company (AGOCO) which dominates production in eastern Libya.

A tanker bound for China is currently lifting 700,000 barrels of crude at the eastern Libyan port of Hariga fed from Sarir, the AGOCO spokesman said. A second tanker heading to Greece will be lifting 400,000 barrels from tomorrow.

A third tanker was expected at the eastern port of Zueitina on Tuesday to load 600,000 barrels of crude, another official said. This is the fourth tanker since the port restarted work in April 2014 when a group campaigning for eastern autonomy ended a blockage.

Strikes and technical delays had hampered efforts to export at Zueitina. Total liftings have hit 2 million barrels since then, an oil official said.

AGOCO restarted output at the Sarir and Messla oilfields after a pipeline blast cut off supplies to Hariga in February.

The North African country had recently managed to reopen the western El Feel and Wafa fields. Libya also exports from two offshore fields, while the eastern Brega port supplies Libya's Zawiya refinery.

This has helped offset the closure of eleven fields in central Libya where the government declared force majeure after militants attacked several fields, taking up to 10 foreigners as hostages.

(Reporting by Ayman al-Warfalli, writing by Ulf Laessing, editing by Louise Heavens and Susan Thomas)  
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Oil & Gas News

Oil & Gas News
Released:  24/03/20152015-03-24
Word count:  417

Crude futures closed higher Monday as a weaker US dollar led prices higher, despite concerns over excess supply after Saudi Arabia's oil minister said OPEC cannot be solely responsible for balancing the market.

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NYMEX May crude rallied sharply in the last 15 minutes before the market's close, ending 88 cents higher at $47.45/barrel.

ICE May Brent settled 60 cents higher at $55.92/b, having also gained ground toward the end of the session.

The late-day surge could be attributed to "shorts scraping money," Tradition Energy senior analyst Gene McGillian said, referring to traders who purchased futures to exit bearish bets. NYMEX refined products for April delivery were mixed. ULSD closed down 36 points at $1.7307/gal. RBOB settled 61 points lower at $1.8039/gal.

Crude futures rose at the start of US trading as the greenback weakened against other major currencies.

The US dollar index was down about 1% to 97.

Saudi Arabia's oil minister, Ali Naimi, said Sunday at an energy conference in Riyadh that OPEC cannot bear the burden of market management alone, repeating his call for cooperation from independent producers.

"Everyone must take part if we want to improve prices, and it is unallowable that one person earns at the expense of the other. In the [1980s], we lost a lot and we are not ready to repeat that," Naimi said.

Saudi Arabia has ramped up production to around 10 million b/d and is ready to meet increased customer demand "at any time," he said.

Riyadh told OPEC earlier this month Saudi production averaged 9.64 million b/d in February.

"Naimi was reiterating what's already been said, but it highlights the willingness of the Saudis to let prices stay low for a while, and they're still the kingpin," IAF Advisors research director Kyle Cooper said.

Fellow OPEC producer Libya is currently averaging 535,000 b/d, Mustafa Sanalla, the chairman of state-owned NOC, said Monday, up from the most recently reported level of close to 500,000 b/d.

Two rival governments are trying to control Libya's oil industry, while Sanalla said the oil company had no allegiance to either regime.

Through June, "Libyan output could easily swing by [500,000 b/d) either way and could increase volatility in the oil market," Barclays analysts said in a research note Monday, noting the country's political instability.

Negotiators from Iran and the US are set to arrive in Switzerland later this week to resume talks on a framework nuclear agreement between world powers and Iran before an end-of-month deadline.

The oil market views a potential agreement as bearish considering it could pave the way for additional exports from Tehran.

--Geoffrey Craig, geoffrey.craig@platts.com --Adal Mirza, adal.mirza@platts.com --Stuart Elliott, stuart.elliott@platts.com --Edited by Annie Siebert, ann.siebert@platts.com  
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Oil & Gas News

Oil & Gas News
Released:  23/03/20152015-03-23
Word count:  155

(Reuters) - Oil prices dropped around a percentage point in early Asian trade on Monday after Saudi Arabia said over the weekend that it would not unilaterally cut its output to defend prices.

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Since oil prices started to fall in June 2014, many analysts have expected Saudi Arabia, OPEC's biggest producer, to curb its output.

Yet Riyadh has so far opted to keep output stable in a move to defend market share against non-OPEC producers like Russia and the United States, where production has soared as a result of the shale exploration boom.

"We tried, we held meetings and we did not succeed because countries (outside OPEC) were insisting that OPEC carry the burden and we refuse that OPEC bears the responsibility," Naimi said.

"The production of OPEC is 30 percent of the market, 70 percent from non-OPEC ... everybody is supposed to participate if we want to improve prices," Saudi oil minister Ali al-Naimi said on Sunday.

Benchmark Brent crude oil futures LCOc1 was trading at $54.79 a barrel at 0123 GMT, down 53 cents from their last settlement. U.S. WTI crude CLc1 was down 58 cents at $45.99 a barrel.

(Editing by Joseph Radford)  
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Business News

Business News
Released:  23/03/20152015-03-23
Word count:  235

VALLETTA, Malta, March 20 (UPI) -- Though Libya's short-term oil potential is waning, officials at a Malta summit said they were confident economic prosperity would come to the nation's people.

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The board of directors at the Libyan Investment Authority met in Malta for their first annual meeting this week as violence lingers in the North African country. LIA Chairman Hassan Bouhadi said the investment authority is independent from political issues in a dividing country.

"LIA's assets are protected and the fund aims to develop these investments to establish economic prosperity for the Libyan people," he was quoted Thursday by the Libya Herald as saying.

U.S. Ambassador to Libya Deborah K. Jones wrote in a February piece in the Libyan newspaper the country may go broke if oil continues to get caught in the cross fire. Oil, she wrote, is "essentially the country's only source of income."

Libyan oil production as of February was around 311,000 barrels per day, a 10 percent decline from the previous month. The Organization of Petroleum Exporting Countries said exports from member-state Libya were less than 200,000 bpd.

The state-owned National Oil Corp. in early March declared force majeure over nearly a dozen fields, saying it could no longer ensure production at the facilities due to the deteriorating security situation.

A terrorist manual reviewed Friday by the Wall Street Journal outlines how the oil industry in Libya should be targeted to starve administrators and Western companies of revenue.

The U.N. Support Mission in Libya said last month "the terrorists are the ones who benefit from the continuing fighting and divisions" in Libya.
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