LIBYA OIL & GAS MARKET OVERVIEW
Bassam Drebika - United Energy ServicesTripoli, Libya
Agenda
• Libya in Figures• Market Overview• Oilfields Map• Offshore Activity • Current Business Opportunities• Establishing a Business in Libya• Questions & Answers
Libya in Figures
Area : 1,759,540 km2 Population : 6,310,434
GDP : 88.86 billion USD
GDP : growth 6.3%
GDP per capita (PPP) : 14,400 USD
Unemployment : 20.7%
Population below poverty line : 7.4%
Inflation : 5.8%
Exports : 66.13 billion USD
Imports : 20.64 billion USDExchange rate : Dinar/USD= 0.77
Source: The World Fact Book – 2008 Data
Market Overview (1)
• UN Sanctions against Libya were lifted in 2003 followed by full constrains removal by mid 2006, helping Libya attract greater foreign direct investment.
• Libya, in the past five years, have made progress on economic reforms as part of a broader campaign to reintegrate the country into the international fold.
• Libyan economy depends primarily upon revenues from the oil sector.
which contribute about 60% of public sector wages. • Libya was ranked first place, in BMI’s updated Upstream Business
Environment rating, with a comfortable margin of three points: proven oil reservesregion-topping oil reserves-to-production ratio (RPR) good licensing terms
Market Overview (2)
• State owned, National Oil Corporation (NOC), accounts for about half of the country’s oil and gas production and 100% of the country's refining capacity.
• Libyan oil & gas licensing rounds continue to draw high international interest; NOC set a goal of nearly doubling oil production to 3 million bbl/day by 2012.
• Libya still faces a long road ahead in liberalizing the socialist-oriented economy, but initial steps - including applying for WTO membership, reducing some subsidies, and announcing plans for privatization - are laying the groundwork for a transition to a more market-based economy.
Libya Oilfield Map & Licenses
Offshore Activity
Exploration phase:CNPC area 17/4Amerada area 54 - 4,000 km of 2D marine seismic awarded to SCANJapex area 40/3&4 - conducted 2D & 3D seismic surveys BP area 37, 38 & 39 - world’s largest 3D seismic acquisition and onboard
processing contracts awarded to Wavefield inseis
Drilling phase:Nippon area 2/1&2 - wildcat well is being drilledPetrobras area 18 – wildcat well is being drilled by drillship Songa expected TD in Sep-09Petramina area 17/3 - wildcat well is being drilledExxonMobil area 20, 21 & 44 - completed 2D & 3D seismic - wildcat well is being drilled.Woodside area 35, 36, 52 and 53 - drilled 4 dry wellsRepsol NC 129 & NC 173 - first offshore hydrocarbons discovery
Production phase:Eni Bouri field on Block NC 41 - production since 1976 at 70,000 b/dTotal Al Jurf field on Block C 137 - developed in 2003, producing 40,000 b/d.
• Using an Agent or Distributor• Establishing an Office
Representative OfficeBranch Office
• Entering as a Joint Venture/Joint Stock Company• Entering Libya Under the Terms of Law No. 5 of
1997 (Encouragement of Foreign Investment)
Establishing a Business in Libya
For any questions or comments in regards to this presentation, please contact:
Bassam DrebikaManaging Director
United Energy Services+218 21 721 3654+218 21 362 1485+218 91 381 5467Email: [email protected]
Thank You