Rebels Invade Gaddafi's Compound; Marathon Oil Continues Monitoring Situation

According to recent reports, the rebels in Libya have invaded Colonel Muammar Gaddafi's compound in the capital city, Tripoli. This may raise hope that the dictatorship in the country is coming to an end. Perhaps the armed conflict that started in February will be over soon. The stabilized situation may allow the resumption of oil production in Libya and might also allow western corporations to return to the country.

Benzinga reached out to Marathon Oil (NYSE: MRO) on the evolving situation in Libya, and inquired if the company had any plans to send their employees (who were evacuated from Libya in February) back to the country.

Marathon Oil responded in a written statement.

“Marathon Oil Corporation continues to closely monitor the unrest in Libya. In the interest of the safety of our employees, which is the Company's top priority, we would not send personnel back into the country until we could ensure the situation was stable and secure. To speculate on a timeframe for our return would be premature at this point,” Marathon wrote.

Marathon Oil also said it has been in preliminary talks with the National Transitional Council that consists of anti-Gaddafi forces regarding the condition of the company's facilities in Libya.

If the National Transitional Council in fact manages to end Gaddafi's dictatorship, global oil output might increase slightly, perhaps negatively affecting the United States Oil Fund ETF (NYSE: USO). Also, Marathon Oil might be able to increase its annual oil production, if the facilities in Libya are not severely damaged.

According to company's statement, “Marathon had expected to produce approximately 45,000 to 50,000 barrels of oil equivalent per day (boepd) from its Libyan interests in 2011.”