Libya is experiencing a shortage of oil drilling and workover rigs, delaying the exploration programs of many U.S. oil majors prospecting in the North African country, according to Phoenicia Group, a U.S.-Libya diversified business group.



The demand for rigs is translating into higher dayrates, says Ryad Sunusi, interim president and chief executive of the firm. "Libya needs at least 40 rigs for the next 10 years to support international oil companies' exploration programs, and this represents a great opportunity for the Libyan private sector to get involved, in forming joint ventures with overseas drilling and workover contractors."



Joint ventures formerly required a 51% to 49% ownership structure in favor of the Libyan partner and majority Libyan board, but were amended to allow foreign partners to maintain a maximum 65% stake and majority of the board.