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Italian Eni SpA Joins BP, Royal Dutch Shell, RWE, Statoil And OMV In Shuttering Libyan Operations, Stock Plunges

Tyler Durden's picture




 

Italy oil producer Eni SpA, which also happens to be the largest foreign oil producer in Libya, plunged over 5% on concerns the company's output will be crippled, after the company announced it is following BP in relocating all non-essential (for now) personnel away from Libya. Per Bloomberg: "Eni, which produced 244,000 barrels of oil equivalent a day
in Libya in 2009, fell as much as 5 percent, the most since May.
The company said in a statement that production is continuing as
normal. BP has no producing assets in Libya and is evacuating
families and non-essential staff, said David Nicholas, a
spokesman for Europe’s second-largest oil company." As we have reported on numerous occasions in the past, unlike Egypt Libya has a substantial amount of oil reserves: in fact, it holds the largest crude reserves on the entire continent, and Europe, particularly Italy and Spain are primary beneficiaries, which explains the plunge in those two stock markets.

From Bloomberg:

Shokri Ghanem, chairman of Libya’s National Oil Corp., said he had no information about a disruption in oil production. Al Jazeera reported earlier that Libya’s Nafoora oil field had stopped producing because of an employee strike.

Eni said that while “no problems at plants and operational activities have been reported” family members of Eni workers are being relocated and repatriated. The shares fell 5 percent, and were down 4.2 percent to 17.59 euros as of 2:27 p.m. in Milan. The company also operates the Greenstream gas pipeline from Libya to Italy through the Mediterranean Sea.

BP was up 0.4 percent in London. BP will remain committed to doing business in Libya, Chief Executive Officer Bob Dudley said at a press conference today after announcing an agreement to buy stakes in licenses in India.

It seems everyone else is also pulling out of Libya:

Austria’s largest oil company OMV AG is withdrawing all non-essential staff from Libya. The Vienna-based company produced 34,000 barrels a day in Libya in the first nine months of 2010, its third-biggest production country after Romania and Austria. OMV shares fell as much as 6.4 percent, the most since October 2009, to 31.80 euros in Vienna.

Statoil ASA, the Norwegian energy producer, closed its office in Tripoli, spokesman Baard Glad Pedersen said by phone. Statoil participates in land-based oil production and exploration activities in the Mabruk field, operated by Total SA, and in the Murzuk basin, operated by Repsol YPF SA.

RWE AG, which is working on developing fields in two concessions in Libya, has suspended operations and recommended that international employees and relatives return home, Carolin Flemming, an RWE spokeswoman, said by e-mail. Some workers returned home on the weekend of Feb. 19, she said.

Royal Dutch Shell Plc said it has temporarily evacuated the families of expat workers in Libya. “We continue to monitor the situation in the country very closely,” said Kirsten Smart, a Shell spokeswoman, by e-mail.

Apparently only Repsol is in such a critical situation it won't dare to shutter operations.

Repsol, Spain’s biggest oil company is operating normally in Libya and isn’t withdrawing staff, Kristian Rix, a Madrid- based spokesman, said. Repsol had net production in Libya of 34,777 barrels a day in 2009 and has been present in that North African country since the 1970s. Repsol dropped 1.9 percent as of 1:23 p.m. in Madrid.

Of all, this one may be the ripest one to short. One thing not to short: crude.

 

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Mon, 02/21/2011 - 10:11 | 981381 papaswamp
papaswamp's picture

Spain...not too smart...

Mon, 02/21/2011 - 10:14 | 981395 Confused
Confused's picture

Can't figure why this would be the case. Desperation? They couldn't really need it that badly, could they? 

Mon, 02/21/2011 - 10:17 | 981401 papaswamp
papaswamp's picture

Tells me they believe the govt will regain control and/or they have so much at stake that any interruption will put them under.

Mon, 02/21/2011 - 10:19 | 981413 Confused
Confused's picture

Odd man out in their thinking it seems. But I'm with you, seems to be the only two logical answers. Thanks. 

Mon, 02/21/2011 - 10:16 | 981402 Moe Howard
Moe Howard's picture

Spain...desperate...

Mon, 02/21/2011 - 15:51 | 982540 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

"Spain...desperate...""

Think outside the box ladies and gentlemen.

Libya may have Oil but has no water or food.

Watch millions of Libyans starve to death within a month.

Watch Spain/Italy/France begin the Colonization of Libya.

...This is NWO coming to fruition...

Mon, 02/21/2011 - 10:10 | 981382 Thomas
Thomas's picture

We need Rodney King to go to the Middle East and ask, "Can't we just all get along?"

Mon, 02/21/2011 - 10:13 | 981394 Oh regional Indian
Oh regional Indian's picture

Curious as to why India is in the tags?

udder than that, the big oil squeeze, this time not by OPEC but by revolution.

We can expect higher lows in oil from here on out. This situation is probably not planned for early reversal.

What will this do to the US? And then the domino effect?

Boggling the mind... virgin territory, but hardly desirable eh?

ORI

http://aadivaahan.wordpress.com/2011/02/21/through-a-lens-darkly/

Mon, 02/21/2011 - 11:09 | 981522 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

I have been waiting for our false economy backed by Helicopter Ben and his crony Timmay to blow. It is amazing how the illusion has kept them going with all of the money printing. It looks like what will bring them down is the spike in commodity prices trashing profit margins and forcing desperate people to revolt. Crack up and boom bitchez!

Mon, 02/21/2011 - 10:18 | 981406 hugovanderbubble
hugovanderbubble's picture

It´s false

Sacyr and Repsol are evacuating workers in Libya.

Mon, 02/21/2011 - 10:20 | 981417 Confused
Confused's picture

Perhaps they are reporting otherwise to save face? Interesting. 

Mon, 02/21/2011 - 10:22 | 981421 Snidley Whipsnae
Snidley Whipsnae's picture

What about the Greenstream Pipeline? Will it continue to supply nat gas to Europe?

"The idea of natural gas from Libya to Italy originating from the 1970s. Feasibility studies were carried out in the 1980s and 1990s. Construction of the pipeline started in 2003.[1] The pipeline's main contractor was Saipem, that used for pipeline laying the Castoro Sei and Crawler vessels. The shore approach and landfall works were done by Boskalis Offshore.[2]

The supplies started on 1 October 2004 and the pipeline was inaugurated on 7 October 2004 by Silvio Berlusconi and Muammar Gaddafi."

http://en.wikipedia.org/wiki/Greenstream_pipeline

Mon, 02/21/2011 - 11:00 | 981495 NOTW777
NOTW777's picture

GITMO should be used to house all these fleeing dictators.  check their gold bars at the door

Mon, 02/21/2011 - 11:11 | 981531 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Confiscate gold bars at the door.

Mon, 02/21/2011 - 11:04 | 981503 savagegoose
savagegoose's picture

someones gotta say it

BTFD

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