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Perspectives

The Mediterranean basin can be a production morato- game changer in the EU, if you look at rium after ratifying recent discoveries in the region.

going Legislative Decree is not easy 83/2012, opening its industry was also looking to the for international formerly closed territory potential for it to capitalize on the oil companies in the region, within 12 nautical miles major recent exploration fnds in following a series of uprisings in of the coast to renewed the eastern Mediterranean, in the 2011, ongoing political instability, activity. Levant, as well as new areas such as arguments over payments to IOCs The government is now taking Mozambique.

in Egypt, and more recently, the the sector seriously. Claudio de Platform and ship fabrication attack on the In Amenas gas plant Vincenti, undersecretary, Ministry frm Rosetti has already been look- in Algeria. for Economic Development, ing further afeld. It opened a new

Scaroni told OMC: “What is hap- described the sector as “strategic yard in Kazakhstan in 2009 which pening in North Africa is a cause and key” at OMC. However, a new now accounts for 30% of the frm’s for concern for us. I’m personally National Energy Strategy aiming to business. very optimistic. Algeria has not return production to 1990s levels Rosetti has been moving into been as impacted by the upheavals. by 2020 failed to get through Italy’s established markets in recent years.

In Egypt, development of the politi- parliament before inconclusive elec- It was quick to step into a void cal system is moving in the right tions in March sent the country into in the North Sea left after the oil direction. a political vacuum with no majority price slump in the 1990s. Rosetti “In Libya, production stopped government, OMC was told. moved in when activity started to but started again. I visit all the time Italy, which started exploring rebound, carrying out projects for and I see the situation is improv- the Adriatic through ENI in the ConocoPhillips and Total, and is ing. I was there last week and there 1950s, has the biggest oil reserves in continuing to look at UK work, espe- were fewer weapons on the streets Europe behind the UK and Norway, cially smaller brownfeld projects. and more willingness to jump-start according to OMC host Ravenna Italian drilling frm Drillmec is the economy. I see the future of this Chamber of Commerce. But most of currently working on three EPC con- country is bright.” it is within 12 miles of the shore – tracts for complete offshore drilling

For Lescoeur it is fairly simple: to get to this resource the country packages for fxed platforms in the “The challenges are in geographic needed a new authorization system Gulf of Mexico and the Caspian turbulence and political turmoil in addition to lifting the morato- Sea for PEMSA—Perforadora in and are amplifed by economic and rium, Scaroni says. Mexico—and Caspian Energy for environmental risk environments. Despite the delays on their own Lukoil in the Russian Caspian Sea.

The trade-off is between risk and doorstep, Italian oil and gas service reward, between long-term vision companies are not resting on their North Africa and short-term constraints.” laurels. Just like North Sea or Gulf The desire of North African coun-

It is not just North Africa that has of Mexico operators, they have a tries to increase their reserves and suffered from political instability. global market to tap. production was reinforced by the

Italy, home of OMC, only last year Innocenzo Titone, chairman of numbers of delegates from Algeria, lifted its offshore exploration and OMC 2013 and also of ENI, says the Libya and Egypt at OMC. Algeria oedigital.com May 2013 | OE 35 0513OE_Analysis_OMC.indd 35 4/22/13 3:40 PM