Oil business waiting for Libyan elections to clear the air – Medserv

Oil companies which suspended their Libyan offshore oil exploration activities are awaiting the outcome of the June elections, oil industry services company Medserv has said in a statement.

The company, which has a base in Malta and the Libyan port town of Misurata, said the first three months of 2012 had been notable for the continuing absence of oil exploration activities offshore Libya.

"It would appear that foreign companies are awaiting the results of the elections planned for June. Nevertheless the company is experiencing a continuation of the enquiries received in the last quarter of last year relating to planned exploration and production operations," Medserv said.

Medserv's company base in Misurata currently has no activity except for customers renewing their contracts relating to storage of equipment, which in turn avoids the Libyan company making a loss.

The Malta base is continuing to receive equipment shipped to Malta from Libya and the company has been appointed by a major multinational service provider to act as a hub to service its requirements in the entire Mediterranean region from the Malta base.

Medserv also said Sicily operations still await a lifting of the environmental restrictions which presently prohibit drilling offshore.

A final agreement has also been reached with the Cypriot authorities with regard to not only the location but also the area accorded to the proposed Cyprus base. The final lease agreement is expected to be signed within the next two weeks.