malta now back in play?, page-4

http://edition.cnn.com/2011/10/21/opinion/libya-oil/index.html?hpt=ibu_c2

Initially the NTC said it would honor all these contracts unless there was clear evidence of corruption. It has shifted this position somewhat in response to popular pressure. The interim oil and finance minister Ali Tarhouni recently announce the formation of a committee which will examine every contract. But changes at this level are unlikely. Many of the recent contracts were awarded in highly-competitive open licensing rounds in which the scope for corruption was very limited. The older contracts could be more doubtful, but these are the producing contracts -- the country's life blood. The government may make the bold move of publishing them, but cannot cancel them without huge cost.


The gas potential is huge and largely unrealized. Libya already sends gas to Italy by pipeline, but it is a much less significant producer than its neighbor Algeria. It would like to find more gas and take a larger slice of the European market. Shell and BP are amongst those already involved in expensive projects to make this happen. New exploration contracts could be issued: French and British companies could benefit. Italy's Eni is already a predominant player, and has returned to the country more quickly than its competitors.

But they are not the only contenders. Some analysts expect that Qatar, holder of the world's third largest gas reserves and a vital supporter of the NTC, may work alongside Libya to market any future gas to Europe, perhaps cooperating on Liquid Natural Gas developments. In any case, the gas has to be found first.