Security Situation in Libya Preventing OMV from Producing Oil

The perilous security situation in Libya is preventing OMV AG (OMV.VI) from producing oil in the north African country, the chief financial officer of the Austrian energy firm said Tuesday.

"We haven't produced for several weeks now in Libya," David Davies told reporters on the side of an economics conference.

Mr. Davies said that OMV usually produces around 32,000 barrels of oil per day in Libya and are loosing that much in production for every day production remains shut down.

Since Libyan strongman Moammar Gadhafi's fall in 2011, hundreds of militias have sprung up across Libya, carving out zones of power, defying state authority and imposing violent attacks. Political leaders use militias to jockey for influence, planting them in Tripoli to push their agendas through force.

Mr. Davies said production should return quickly if the security situation stabilizes as it did after Libya's civil war.

In 2010, OMV produced around 10% of its production in Libya. After the war and unrest, OMV has been focusing on production in more politically stable countries, such as its recent acquisition in Norway.

(DowJones)