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Report: Libya on the road to oil failure

Jan. 18, 2013 at 8:46 AM

WASHINGTON, Jan. 18 (UPI) -- An editorial from Bloomberg News states that Libya may eventually fail as a petro-state unless it does more to address ongoing security and political woes.

The Libyan oil sector has rebounded since last year's civil war. The country is producing around 1.6 million barrels per day, its pre-war level.

The editors at Bloomberg News write that the success story for Libya makes for "short reading."

"Thanks to oil, the country has money, and plenty of it," they write.

Last month, Eni Chief Executive Officer Paolo Scaroni presented the new Libyan government with an investment plan worth $8 billion for the development of ongoing production and new exploration activities over the next 10 years.

NATO forces responded to the Libyan civil war in 2011 with airstrikes, which paved the way to regime change in the country. Internal divisions, national protests and terrorist activity that culminated with the September death of the U.S. ambassador to Libya, however, has complicated national development.

Bloomberg's editors note that "real progress is impossible" unless the country tackles institutional and security challenges.

"A failed petro-state in Libya remains a possible outcome of the revolution that began two years ago this week," they state.

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