Gazprom and Shell Land Massive Energy Deal in Libya
Best known for his flamboyant all-female bodyguard corps and newly discovered sense of regret over the Lockerbie Pan Am bombing, now General Muammar al-Gadhafi can add “global energy player” to his resume. This weekend it was announced that the Libyan government has granted major exploration licenses to Gazprom, Royal Dutch Shell, Sonatrach, and PGNiG. According to Vedomosti, the Russians were given the sweetest slice, with an estimated 20 million tonnes of oil in blocks 1, 2 and 3 in contract area 64 in the Ghadames Basin, and significant natural gas reserves. While Gadhafi spent yesterday basking in warmth of French diplomacy during a Paris visit (which can be purchased for $14.7 billion in contracts for armaments and nuclear deals), others have noted that Libya’s bid to become an energy superpower and its continuing human rights record makes for a troubling combination. The new presence of Gazprom and Sonatrach in this important new, under-explored market has also raised eyebrows, yet for the moment, Moscow’s political leverage looks somewhat weak.