Heritage strikes first deal

Heritage Oil Corporation , the London Stock Exchange-listed oil exploration company, has made a bold step into the Libyan market. In early October, it struck the first major post- Colonel Mu'aamar Qadhafi business deal by buying a majority stake in the well-connected Benghazi-based Sahara Oil Services Holdings , which was established in April 2009 and has an operational yard and equipment based in Benghazi.

The company announced on a 4th October that it had bought a 51 per cent stake in Sahara for $19.5 million. It said that Sahara 'has the necessary long-term permits and licences to provide onshore and offshore oil field services in Libya as well as the rights to own and operate oil and gas licences.'

Heritage said that it was 'looking to play a significant role in the future development of the oil and gas industry in Libya' and that it was 'exploring ways to assist the National Transitional Council (NTC) and the state oil companies to rehabilitate certain of their existing fields and recommence production.' The deal was a characteristically aggressive step by the company, whose charismatic CEO is Tony Buckingham . Before he became an oil man in 1999, he was the inspiration behind the foundation of the famous Africa-focused private security company Sandline International .

A number of sources have told Libya Focus that Heritage had been attempting to provide oil field security services to the NTC. The NTC rejected its proposal, along with those of many other private security providers. Its position is that all security and all armed personnel in Libya must be Libyan. Having found a Libyan partner, Heritage may have overcome this initial hurdle. In his statement, Buckingham said that Heritage via Sahara was 'uniquely positioned to pursue field rehabilitation activities and be awarded exploration and production licences.' He described the acquisition as 'consistent with Heritage's first mover strategy of entering regions with vast hydrocarbon wealth where we have a strategic advantage. Ongoing discussions with the NTC and other stakeholders continue to highlight opportunities with the potential to transform Heritage.'

The company has established a base in Benghazi in the past five months and says it 'has been in discussions with senior members of the National Transitional Council, the National Oil Corporation, and certain subsidiaries.' According to a report in Petroleum Economist , Heritage is represented in Libya by Christian Sweeting , who has lobbied Foreign Secretary William Hague to expedite visa applications from four Sahara employees to visit the UK. Hague did not get involved.

For more news and expert analysis about Libya, please see Libya Focus and Libya Politics & Security.

© 2011 Menas Associates

Qadhafi loyalist heading to oil port of Ras Lanuf

According to UN estimations 200,000 people have fled Libya since the anti-regime revolt began over three weeks ago. The UN is launching an appeal for £99 million for humanitarian aid to help 600,000 people within Libya and those trying to leave the country.

UN Secretary General Ban Ki-Moon has appointed Jordan's former foreign minister, Abdelilah Al-Khatib, as a special envoy to Libya. A statement from Ban Ki-Moon's office said that the Secretary General noted "that civilians are bearing the brunt of the violence, and calls for an immediate halt to the government's disproportionate use of force and indiscriminate attacks on civilian targets".

Reports have emerged that Libyan security forces and Colonel Mu'ammar Qadhafi supporters have occupied the town of Bin Jawad, and are making their way toward the oil port of Ras Lanuf 50km away.

The anti-government rebels are at a considerable disadvantage against Qadhafi's loyalists fighting in the Leader's tribal heartland, because the latter are better armed and organised. There have been reports that the troops have taken over the town forcing the inhabitants to act as human shields. NATO Secretary General Anders Fogh Rasmussen called the situation "absolutely outrageous" but said that NATO has no plans to intervene.

Speaking about the situation he said: "These systematic attacks against the civilian population may, as stated by the UN Security Council, amount to a crime against humanity."

In related news, the UK government has confirmed that the unsuccessful SAS mission to Libya was authorised by Foreign Secretary William Hague. The mission, intended to make contact with the Libyan Leader amid ongoing unrest, failed when six soldiers and two foreign office officials were detained.

The group was dropped by helicopter in eastern Libya on Friday 4th February but were later seized and taken to a military base by opposition fighters.

Speaking about the mission Hague said: "The team went to Libya to initiate contacts with the opposition. They experienced difficulties, which have now been satisfactorily resolved. They have now left Libya." He added that another mission would be sent to Libya “in due course”.

Sources: BBC News, Reuters, The Guardian

For more news and expert analysis about Libya, please see Libya Focus and Libya Politics & Security.

Events in Egypt attract international commentary

The White House evoked President Barack Obama's 2009 speech in Cairo. It said, citing freedom of speech, a say in government and the rule of law, "What is happening in the region reminds us that, as the president said in Cairo, we have an unyielding belief that all people yearn for certain things."

In his State of the Union address on 25th January, Obama declared that the US stood with Tunisia "where the will of the people proved more powerful than the writ of a dictator". His officials were quick to explain he was not calling for all Arab leaders to be overthrown.

Secretary of State Hillary Clinton also chose a middle way between support for Egypt and a call for some reform, saying, “We support the universal right of the Egyptian people, including the right to freedom of expression, association and assembly.”

One of the toughest comments came from German Foreign Minister Guido Westerwelle, who said he was "extremely concerned" and called on all involved to show restraint. "We are seeing in the last few weeks that a country's stability is not endangered by granting civil rights. It is through the refusal of civil and human rights that societies become unstable," he said in reference to Tunisia.

Britain's Foreign Secretary William Hague said in a radio interview that it was not for other countries to dictate who should be in power, or what their tactics should be. He added, Clearly, in so many of these countries people do have legitimate grievances, which are economic and political. While every country is different, and we shouldn't try to dictate what they should do, in general I do think it's important in this situation to respond positively to legitimate demands for reform, to move towards openness, transparency and greater political freedom. That would be my advice to Egyptian leaders.

"I would urge the Egyptian government, and I have urged the Egyptian government, to respect rights of freedom of assembly and freedom of expression. It would be futile over time to try to suppress such things.”

For more news and expert analysis about Egypt, please see Egypt Politics & Security.

© 2010 Menas Associates