Libyan Attempt To Bring Back Oil Cos Fails To Ignite Interest

A new attempt by Libya's government to bring back foreign oil companies to the war-torn country has failed to ignite interest, people familiar with the contacts said in recent days.

The government of Col. Moammar Gadhafi is battling a rebellion by the rebel Transitional National Council which, surfing on recent international recognition, has also got in touch with international oil giants.

According to industry officials, which include Libyan oil sources, Eni SpA (E), Total SA (TOT), Repsol SA (REP.MC) and OMV AG (OMV.VI) as well as U.S. companies were recently contacted by Tripoli to return to Libya.

Last month, the country's National Oil Corp., or NOC, "sent a circular to U.S. and European companies asking them to resume operations" and also sent one of its executives to Europe for this purpose.

A manager at a foreign company with interests in Libya said Omran Abukraa, the recently-appointed head of the National Oil Corp., "is trying to convince them to come back and do business in Libya, but he got nothing."

Both sides also appear to disagree on the significance of the approach.

Abukraa said they were part of "continuous contacts with our [foreign companies] partners.

"They were very positive with us because of their keenness to maintain their interests in Libya," he said.

But without commenting on whether it had received any letters from Abukraa, OMV said it "isn't in talks with the Libyan government nor with the transitional government." Total and Eni declined to comment and a Repsol spokesman couldn't immediately comment.

OMV said that "production has been stopped; we are waiting to see how the situation develops."

Foreign oil companies pulled out of Libya late February when civil war erupted there, triggering the shut down of most of its oil production. They are also unable to conduct financial transactions with NOC due to sanctions.

Abukraa said that: "Because of the so-called force majeure state, these companies aren't returning back. But according to the contracts signed with these companies such force majeure should be discussed with the NOC."

However, he said: "Any of our foreign partners who would like to return back to work in Libya is welcome. Libyan oil fields are fine and the security situation in Libya is well."