Hess Profit, Output Tumble in Wake of Libya Unrest

Reuters

Oct 30 (Reuters) - Political and military unrest in Libya sharply curtailed Hess Corp's output and profits in the third quarter, and forced it to temper expectations for the year, the oil and natural gas producer said on Wednesday.

Hess, which first began Libyan operations in 1955, said political instability in the nation crimped its production in the quarter through Sept. 30, and that it now expects full-year output to be at the low end of an expected range of 340,000 to 355,000 barrels of oil equivalent per day (boe/d).

Libya's total exports have slumped to around 90,000 barrels per day, less than 10 percent of capacity, as protests and labor strikes at oil export terminals have halted operations at ports and fields.

While Libyan production does not materially affect its profit, the company said it would have to spend more in the OPEC nation due to the uncertainty.

The country's oil production has been sharply down since uprisings against former leader Muammar Gaddafi began in 2011. Libya's National Oil Corporation controls the nation's production and partners with Hess and other international companies, including ConocoPhillips, Marathon Oil and BASF's Wintershell.

Eni, the largest foreign oil producer in Africa, echoed Hess's concerns on Wednesday when it cut its 2013 production outlook to reflect shrinking volumes from Libya and Nigeria. Eni, which is based in Italy, now expects its production for the year to be lower than it was in 2012.

Hess's total oil and gas output fell during the third quarter to 310,000 boe/d from 402,000 boe/d a year earlier.


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