Libya rebel oil firm plays down export prospects

Libyan rebels are unlikely to export any more oil until they are able to resume production but are keeping in touch with potential buyers, an oil official in the opposition-held east said on Monday. The rebels control fields owned by the Arabian Gulf Oil Company (Agoco), including Nafoora, Misla and Sarir, which have a combined potential production capacity of about 400,000 barrels per day, Wahid Bugaighis told Reuters in an interview.
"We still have contacts with potential buyers, but naturally nothing materialises right now until we know what the situation is and when we will be back on stream," said Bugaighis, who was appointed head of the National Oil Company, set up by the Benghazi-based rebel national council to sell oil produced in rebel-held areas.
Qatar, which is marketing the rebels' crude, said last week it had facilitated the sale of 1 million barrels of oil this month as well as arranged the shipment of four cargoes of fuel to Benghazi and was ready to support further transactions. Rebels had to shut down oil production after forces loyal to Muammar Qadhafi attacked Agoco's Misla field in early April, damaging its power generation system, an oil tank, some smaller diesel tanks and other equipment, Bugaighis said.
He said he hoped production would resume in "a few weeks", but this depended on security, the extent of the damage and other factors. Mixed signals on who is in charge of east Libya's energy industry has made it harder to form a clear picture on rebel oil policy. An Agoco official contacted by Reuters said the firm was not giving a timeline on resuming production and was still operating independently of Bugaighis by dealing directly with the national council.
Bugaighis said rebels were securing the fields under their control but were not working on getting any of the fields apart from Agoco's pumping again for now. "They are secured, but, you know, look at a map and look at the enormity of the desert and the tiny spots of oil fields. You really would need almost an army to fully secure them," he said. "But we are satisfied with the security we have right now, at least in terms of protecting essential infrastructure and our people," he added.
NEW POLICY Bugaighis said rebels were still in contact with potential buyers, both those who had purchased oil from Libya before and possible first-time customers. "Some people are keeping their options open," he said, declining to name any specific possible buyers.
The Libyan opposition is eager to resume oil production so it can pay salaries and meet other expenses as it tries to oust Qadhafi, who is fielding better-armed and trained troops against rebels on the road between Ajdabiyah and Brega. If they do manage to oust Qadhafi, Bugaighis said Libya's new leadership would try to root out corruption in the oil industry and might reconsider some of the Qadhafi government's production policies.
"The policy from the inception of the Qadhafi regime, or say about three or four years into it ... their objective was always produce, produce the maximum, regardless of whether it was sustainable or not. This is what we want to reconsider," he said.
But Bugaighis, 74, said he did not expect to stay head of the National Oil Company if Qadhafi is ousted. He said his current role was mostly to make sure operations in the east get back on stream as soon as possible and help market any oil exports. "When things are stabilised, there are certainly more capable people than me, and younger people, to take over," he said.