Royal Dutch Shell and BP agree to annual deals to buy Libyan crude

Royal Dutch Shell

Royal Dutch Shell and BP agreed to annual deals to buy Libyan crude, underscoring how the North African country’s recovering production and improving security are enticing some of the world’s largest oil companies.

Shell’s deal with Libya’s National Oil Corp., was the first of its kind since 2013, and Europe’s biggest oil company will load its first cargo under the contract within days, according to people familiar with the matter, who asked not to be identified because they are not authorised to talk to the media.

BP, which did not have a term deal in 2017, also reached an agreement for this year, the people said.

Libya pumped the most oil in four years in 2017 amid signs that the worst of a conflict that hobbled output was being resolved.

While the deal would be good news for Libya, the country’s production remains well below where it used to be under Moammar Qaddafi.