Heritage Oil is well-placed to play a major role in the Libyan energy sector through the acquisition of an oil service company in Benghazi, an executive said.
Heritage Oil announced Monday that it acquired a 51 percent interest in Sahara Oil Services Holding Ltd. through a $19.5 million deal. Heritage said that, through the acquisition, it would start to play a substantial role in the development of the oil and natural gas industry in Libya.
Heritage Chief Executive Officer Tony Buckingham said the acquisition puts his company in a strategic position to get a stronger foothold in post-war Libya.
"Ongoing discussions with the Transitional National Council and other stakeholders continue to highlight opportunities with the potential to transform Heritage," he said in a statement.
Sahara Oil Services, set up in 2009, has won licenses for onshore and offshore drilling campaigns in Libya. Heritage added it has set up a corporate presence in Benghazi, the former rebel capital.
Oil companies active in Libya said they expect oil production to return to post-war levels soon but add some of the energy infrastructure was damaged by conflict.
Italian energy company ENI announced recently that it restarted production at 15 oil wells in eastern Libya. At present, the company said, oil production is near 31,900 barrels per day.
Libya, before the war, was producing around 1.3 million bpd.