Schlumberger will cease operations in Libya in July until $242 million in fees are paid

Schlumberger announced that the company will suspend its service activities in the Libyan oil fields starting July 1 until financial debts of more than $242 million are settled.

In a letter dated Sunday to National Oil Corporation Chairman Farhat Bengdara, Schlumberger said the company was in serious financial difficulties due to its high debts to its Libyan companies Schlumberger Global, Daul Schlumberger and Anadryl International.

The statement said that this issue had a negative impact on maintaining business continuity and financial obligations to local and non-local employees and suppliers, and also resulted in the inability to maintain specialty tools and equipment in the field.

The company confirmed that the value of the debt it currently owes to its Libyan companies exceeds $242 million: “an unprecedented level.” Its debts must be paid by 13 oil companies as well as the Libyan Oil Institute.