CEO says Total won't buy Libyan rebel crude for time being

Paris (Platts)--6Apr2011/622 am EDT/1022 GMT

Total will not buy Libyan crude sold by the rebel National Transitional Council (NTC) for the time being, CEO Christophe de Margerie said Wednesday, explaining that the company was currently complying with international laws governing dealings with Libya.

"We will support the international laws and the embargo that has been imposed by the UN and Europe," de Margerie told reporters on the sidelines of a conference in Paris.

"These embargoes prevent us from conducting this type of operation...so we will not do it. But we hope to resume as soon as possible," he said.

"If it is Libyan crude that can be acquired respecting the laws and the embargo we will do it," he said. "We will start [buying Libyan crude] as soon as it is doable."

Libya is currently under three sets of sanctions imposed by the US, UN Security Council and EU.

The NTC exported its first cargo of crude Tuesday from the eastern port of Tobruk, where the Suezmax oil tanker Equator Tuesday loaded 1.2 million barrels of Sarir/Mesla blend crude.

The vessel was chartered by Vitol but the final destination of the crude was not known.

The state-owned National Oil Company based in Tripoli has threatened legal action against any company that deals with the rebels.

De Margerie also said he hoped the situation in Libya would be resolved quickly.

"It is preferable for everyone that Libya returns to the market quickly," he said, adding that for the time being the loss of Libyan production was "being covered by Saudi Arabia and others."

--Margaret McQuaile, margaret_mcquaile@platts.com

--Kate Dourian, kate_dourian@platts.com

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