[ ]

CONTENTS
OVERVIEW OF THE LIBYA ....................................................................................................................................... 3

OIL AND GAS INDUSTRY IN LIBYA .......................................................................................................................... 5

LIBYA'S MEMBERSHIP IN OPEC .............................................................................................................................. 6

THE RESERVE OF LIBYA .......................................................................................................................................... 7

OIL & GAS PRODUCTION IN LIBYA........................................................................................................................ 10

OIL & GAS CONSUMPTION IN LIBYA..................................................................................................................... 11

LIBYA’S OIL & GAS EXPORT .................................................................................................................................. 11

OIL AND GAS FIELDS IN LIBYA .............................................................................................................................. 13

INFRASTRUCTURE PROJECTS IN THE FIELD OF PETROCHEMICALS ........................................................................ 16

COMPANIES OPERATING IN LIBYA ....................................................................................................................... 22

OIL AND GAS DISCOVERIES IN THE PAST THREE YEARS ........................................................................................ 23

SALE OF TECHNICAL INFORMATION OF NEW CONTRACTS IN 2011 ...................................................................... 25

PROBLEMS FACED BY THE ENERGY INDUSTRY IN LIBYA ....................................................................................... 26

PROPOSED SOLUTIONS TO THE PROBLEMS OF ENERGY IN LIBYA ........................................................................ 26

CONCLUSIONS ..................................................................................................................................................... 27

REFERENCES......................................................................................................................................................... 28
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OVERVIEW OF THE LIBYA

The name of the Libu Berber tribesmen in Greek was adopted as Libuēs, Latinised to Libyes in
Classical Greece the term had a broader meaning, encompassing all the continent that later (2nd
century BC) came to be known as Africa, in antiquity assumed to
make up one third of the world's landmass, besides Europe and
Asia.

Libya extends over 1,759,540 square kilometers, making it the ,

It is bound to the north by the Mediterranean Sea, the west by
Tunisia and Algeria, the southwest by Niger, the south by Chad and Sudan and to the east by
Egypt.

At 1,770 kilometers, Libya's coastline is the longest of any African country bordering the
Mediterranean, the portion of the Mediterranean Sea north of Libya is often called the Libyan
Sea. The climate is mostly dry. However, the northern regions enjoy a milder Mediterranean
climate.

Historically the area of Libya was considered three provinces,

Tripolitania in the northwest, Barka (Cyrenaica) in the east, and
Fezzan in the southwest. It was the conquest by Italy in the
Italo-Turkish War that united them in a single political unit.
Under the Italians Libya, in 1934, was divided into four
provinces and one territory (in the south): Tripoli, Misurata, Benghazi,
Al Bayda, and the Territory of the Libyan Sahara.

The Libyan Desert, which covers much of Libya, is one of the most arid places on earth, in
places, decades may pass without rain, and even in the highlands rainfall seldom happens, once
every 5–10 years.

Libya has a small population residing in a large land area. Population density is about 50
persons per km² in the two northern regions of Tripolitania and Cyrenaica, but falls to less than
one person per km2 elsewhere. Ninety percent of the people live in less than 10% of the area,
 [ ]

primarily along the coast. About 88% of the population is urban, mostly concentrated in the two
largest cities, Tripoli , Benghazi and Al Bayda, 50% of the population is estimated to be under
age 15.

Libya's population includes 1.7 million students, over 270,000 of study at the tertiary level.
Education in Libya is free for all citizens, and compulsory up until secondary level. The literacy
rate is the highest in North Africa; over 82% of the population can read and write.

After Libya's independence in 1951, its first university, the University of Libya, was
established in Benghazi, in academic year 1975/76 the number of university students was
estimated to be 13,418. As of 2004, this number has increased to more than 200,000. The rapid
increase in the number of students in the higher education sector has been mirrored by an
increase in the number of institutions of higher education.

GENERAL INFORMATION
Table (1) The general information about Libya.

Full name The Great Socialist People's Libyan Arab Jamahiriya

Population 5.91 million (2009) (6 million in 2012)
Capital Tripoli
Area 1.77 million sq. km
Major language Arabic
Major religion Islam
Life expectancy 72 years (men), 77 years (women)
Main exports Crude oil, petroleum products, natural gas
 [ ]

By far the predominant religion in Libya is Islam with 97% of the population associating with
the faith. The vast majority of Libyan Muslims
adhere to Sunni Islam, which provides both a
spiritual guide for individuals and a keystone for
government policy.

The Libyan economy depends primarily upon

revenues from the oil sector. In the early 1980s, Libya was one of the wealthiest countries in the
world; its gross revenues per capita were higher than that of countries such as Italy, Singapore,
South Korea, Spain and New Zealand.

OIL AND GAS INDUSTRY IN LIBYA

The Libyan economy is heavily dependent on the hydrocarbon industry which, accounted for
over 95 percent of export earnings ., Libya holds around 44 billion barrels of oil reserves, the
largest in Africa, and slightly over 54 trillion cubic feet (tcf) of
natural gas reserves. In 2009, total oil production (crude plus
liquids) was approximately 1.8 million barrels per day (bbl/d).

Libya’s energy consumption mix has remained relatively

constant throughout the decade, with approximately 74 percent
of energy demand being met by oil and 26 percent by natural
gas. However, with electricity demand on the rise, the government is planning to expand the use
of natural gas to meet domestic needs while also exploiting solar and wind potential in more
rural areas. Natural gas currently represents about 45 percent of generated electricity.

The Libyan government plans to increase its oil reserves, production capacity, and further
develop the natural gas sector in the medium-term as the country continues to recover from over
a decade of U.S. and international sanctions. The United Nations and the United States lifted
sanctions on Libya in 2003 and 2004, respectively. In 2000, the United States rescinded Libya’s
designation as a state sponsor of terrorism. Since then, international oil companies have stepped
up investments in hydrocarbon exploration and production despite.
 [ ]

The oil and gas industry is the driving force behind Libya’s economic development, providing
the massive investment needed for the country’s ambitious infrastructure plans. To sustain the
impetus, Libya is already mid-way through its short-term plan
to raise its oil production from the 2006 level of 1.6 million
b/d to 2 million b/d by 2010, with longer-term ambitions to
raise it to 3 million b/d by 2012.

In order to achieve these objectives Libya estimates that it

will need to attract US$30 billion foreign direct investment in
the petroleum sector in the upstream and downstream as well as in refining and petrochemicals.

LIBYA'S MEMBERSHIP IN OPEC

Libya is a full member in the OPEC, Libya has joined in 1962, two years after the founding of
the Organization, the OPEC Organization of the Petroleum Exporting Countries is an
international organization OPEC consists of twelve members,
which are heavily reliant on oil revenues as their main source of
income.

OPEC’s represented 76 % of world proven oil reserves in 2008,

and 44.8% of total world oil production. And export 28.1 Million barrels per day of its total
production.

The main objectives of OPEC are: principal aim of the Organization shall be the coordination
and unification of the petroleum policies of Member Countries and the determination of the best
means for safeguarding their interests, and ensuring the stabilization of prices in international oil
markets.
 [ ]

THE RESERVE OF LIBYA

Oil reserves in Libya are the largest in Africa and the ninth largest in the world with 44.1billion
barrels as of 2009 after new explorations, that giving Libya 66 years of reserves at current
production rates if no new reserves were to be found.

Table (2) The rank of Libya’s reserves in the world.

Estimated reserves
Rank Country
( B BBL,2009 )
1 Saudi Arabia 267
2 Canada 179
3 Iran 132
4 Iraq 115
5 Kuwait 104
6 United Arab Emirates 98
7 Venezuela 79
8 Russia 54
9 Libya 44
10 Nigeria 36

Libya is considered a highly attractive oil area due to its low cost of oil production (as low as
$1 per barrel at some fields), and proximity to European markets.

Libya has five major onshore sedimentary basins, Sirt Basin , Murzuq Basin , Kufra Basin ,
Ghadamis Basin , Cyrenaica Platform , Tripolitanian Offshore Basin

The main producing basins of Libya are in order of importance the Sirt, Ghadamis, Murzuq
and the offshore Tripolitanian basin.

Libya includes several hydrocarbon provinces of which the most important is Sirt Basin. This
Basin contains some sixteen giant oil fields with about 117 Billion barrels of in place proven
recoverable oil . These form 89% of all the discovered Libyan petroleum reserves. This basin is
considered to be the most prolific oil basin in north Africa with an oil gravity that ranges
between 44 and 32 API, and a sulphur content of between 0.15 and 0.66%.
 [ ]

Figure (1) The petroleum geology of Libya.

The Ghadamis estimated 3 billion bbl of recoverable oil, the Murzuq Basin, oil reserves are
some 1 billion barrels.

The offshore basins are considered to be highly prospective but have been exposed to only
limited exploration to date.
 [ ]

Figure (2) The oil reserve in Libya Vs. years.

We note that oil reserves are still at the stage of growth so far and this is due to new
discoveries after 2007, which contributed to raise the rate of discovery in Libya.

Table (3) The Libya oil and gas reserve since 2000 to 2009.
Reserve
Years
Oil(B BBL) Gas(Tcf)
2000 36.0 1.31
2001 36.0 1.31
2002 36.0 1.50
2003 39.1 1.49
2004 39.1 1.49
2005 41.5 1.32
2006 41.5 1.42
2007 43.7 1.54
2008 43.7 1.54
2009 44.1 1.62
 [ ]

OIL & GAS PRODUCTION IN LIBYA

Libya produces approximately 1.8 million barrels of oil per day during this year after it was
decided that production will increase to 2 million barrels a day however, because of the
international crisis and the decision of OPEC to reduce production the Libyan plan to increase
production of 3 million barrels a day by the year 2012 has
been postponed. But as far as gas then Libya will increase
production of gas from 2.7 billion cubic feet to more than
3.8 billion cubic feet with the start of the year 2014 and
2015 such that Libya becomes a major gas producer.

In the frameworks of Libya plan to increase its

production capacity in Oil and Gas So that Libya began a new policy of contracting through the
tender sessions such that it offered areas are candidates for oil and gas production in all the rich
sedimentary basins of Libya in four sessions in which international oil companies competed from
all the continents. As a result of this sessions there emerged new discoveries of oil and gas finds.

Figure (3) The oil production in Libya Vs. years.

 [ ]

Table (4) The Libya oil and gas production since 2000 to 2009.
Production
Years
Oil(BBL/Day) Gas(MM ft3/Day)
2000 1475 0.6
2001 1427 0.6
2002 1375 0.6
2003 1485 0.5
2004 1624 0.8
2005 1751 1.1
2006 1834 1.3
2007 1848 1.5
2008 1846 1.5
2009 1847 1.5

OIL & GAS CONSUMPTION IN LIBYA

Libya’s consumption of petroleum is 313 M BBL of oil per day which makes 51st globally and
7th in the Arab nation from the standpoint of consumption. It is a large number in comparison
with the population of Libya which is estimated at six million. That is
20.1 barrels per capita per year; this makes Libya the biggest consumer
of Petroleum per capita in Africa.

As far as its consumption of Natural gas it amounts to 1.4 billion cubic

feet of natural gas per day which makes it 118th in the world and 8th in
the Arab Nation. The consumption of gas in Libya is still little compared
with consumption of oil. This all goes back basically to the fact that
Libya has not begun the production of gas as a basic source of energy
and it still depends on petroleum essentially which is the opposite to the rest of the Arab Nation
and Europe. This is because the low export prices of natural gas and the high level of poverty in
the Arab nation. This makes gas a cheap source of energy compared to Petroleum.

LIBYA’S OIL & GAS EXPORT

Libya had estimated net exports (including all liquids) of 1.525 million bpd. The majority of
Libyan oil exports are sold to European countries, such as Italy (495,000 bpd), Germany
 [ ]

(253,000 bpd), Spain (113,000 bpd), and France (87,000 bpd). After the lifting of sanctions
against Libya in 2004, the United States has gradually increased its importation of Libyan oil; the
U.S. imported an average of 85,500 bbl/d of total Libyan oil exports in 2006, up from
56,000 bbl/d in 2005.

Most of the petroleum products produced by the National Oil Corporation are sold on a term
basis, including to the country's overseas oil retail and marketing network Oilinvest, also known
as Tamoil. Through Tamoil, Libya are a direct producer and distributor of refined products in
Italy, Germany, Switzerland, and Egypt. Tamoil Italia, based in Milan, controls about 7.5% of
Italy's retail market for oil products and lubricants, which are distributed through 3,000 Tamoil
service stations. Libya's ability to increase the supply of oil products to European markets has
been constrained by Libya's refineries' need for substantial upgrading to meet stricter European
Union environmental standards in place since 1996.

Figure (4) Libya’s oil export by destination.

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OIL AND GAS FIELDS IN LIBYA

There are many oil fields in basins of Libya, but the bulk of which resides in the Sirte and
Ghadames basin and Murzuq and we will mention in this side to doing the most important fields.

Figure (5) The oil &gas field in Libya.

SARIR FIELD
The Sarir Field was discovered in southern Cyrenaica during 1961 and is
considered to be the largest oil field in Libya, with estimated oil reserves of
12 MM bbl, Sarir is operated by the Arabian Gulf Oil Company (AGOCO), a
subsidiary of the state-owned National Oil Corporation (NOC).
The Sarir field or, more specifically, Sarir C which is part of a three-field
complex, is 56 km long and 40 km wide covering 378 km². To its north is Sarir L, covering 15
mi². Situated between the two is a much smaller Sarir North pool. Estimated ultimate oil
recovery from Sarir L is 1.2 MM bbl.
 [ ]

ELEPHANT FIELD

The Elephant field (also known as the El Feel) is an oil field located in
onshore in Libya's Murzuq Basin, in October 1997, an international
consortium led by British company LASMO, along with Eni (33%) and a
group of five South Korean companies, announced that it had discovered
large recoverable crude reserves (around 700 million barrels) at the NC-
174 Block, which is located in the southwestern Libyan desert about 465
miles (800 km) south of Tripoli, Libya. LASMO was subsequently purchased by ENI, the
Operator of the Elephant Field is Agip Oil Company Limited, a company equally owned by
NOC and Eni.

GIALO HIGH
The Gialo High is a relatively small horst block in the eastern Sirte Basin of the Libyan oil
fields. It is most important and best known for the stacked oil fields in rocks ranging from Early
Cretaceous to Oligocene age. There are several billion barrels of oil reserves associated with the
structure both over the crest of the horst as well as flanking the high in the adjacent graben, the
Operator of the Waha oil company.

ZELTEN OIL FIELD

The Zelten oil field (now known as the Nasser field) is located in the town of Zelten, at the foot
of the Zelten Mountains, about 105 miles south of Marsa El Brega in Concession 6. Zelten holds
the title as the largest oil field in the Gulf of Sirte. The 229 wells in Zelten use a gas lifting
system.

WAHA FIELD
Waha field is an oil field located in Libya and owned by the Waha Oil
Company (WOC), which is a subsidiary of the National Oil Corporation
(NOC). During 2006, the Waha fields produced around 350,000 barrels per day
(bpd), down from around 1 million bpd in 1969 and 400,000 bbl/d in 1986.
However, WOC expects to increase Waha output by around 200,000 bbl/d over the next couple
of years. In 2005, ConocoPhillips and co-venturers reached an agreement with NOC to both
return to its operations in Libya and to extend the Waha concession by another 25 years.
 [ ]

ConocoPhillips operates the Waha fields with a 16.33% share in the project. NOC has the largest
share of the Waha concession at 59.17%, and additional partners include Marathon (16.33%),
and Amerada Hess (8.17%).

BELHEDAN OIL FIELD

The Belhedan oil Field is located in the Sirte Basin .The Belhedan structure, located on the
south-eastern edge of the Beda Platform, is a small horst block which trends north-northeast, the
primary zone of interest is the Belhedan Gargaf reservoir which was discovered in 1962 by
Waha Oil Company when the first exploratory Well V1 was drilled in this field, development
drilling which was started immediately after the first discovery.

The reservoir development started early after first discovery in 1962 when the well V-1 tested
commercial oil production, Belhedan field started commercial production in October 1963. The
reservoir was developed to produce under the mechanism of natural bottom water drive.

Field development has continued since its discovery, as of December 31, 2009, a total of 40
wells have been drilled in Belhedan field and the field had produced 179.840 million barrels,
with substantial reserves are still remaining in the main development area of the field. Presently,
all wells are being produced by ESP. As of December 31st 2008, The field average oil
production rate was 24691 BOPD, with 27.4% WC.

BOURI FIELD
The Bouri Offshore Field is part of Block NC-41,
which is located 120 kilometers (70 miles) north of
the Libyan coast in the Mediterranean Sea. It was
first discovered in 1976 at a depth of 8,700 feet
(2,700 m) and is estimated to contain 2 billion
barrels (320,000,000 m3) in proven recoverable
crude oil reserves and 2.5 trillion cubic feet (71 km3)
of associated natural gas with an annual production
potential of 6 billion m³. Bouri is considered the largest producing oilfield in the Mediterranean.
 [ ]

RAGUBA FIELD
The Raguba field is an oil field located in the central part of Libya's Sirte
Basin in Concession 20. The Sirte Oil Company (SOC) operates the Raguba
field. The field is connected by pipeline to the main line between the Nasser
field, one of the largest in Libya, and Marsa El Brega. Raguba field has 80 wells
producing high gravity (43 °API) oil. The first exploration oil well in this field was drilled in
January 1961 with production commencing in 1963. By the end of 2005, the field had produced
787 million standard barrels of oil and 859×109 cu Ft of associated gas.

Table (5) The biggest oil fields in Libya.

Daily rate
Field Company API
(M BBL/Day)
Sarir Arabian Gulf 212 37.4
El Sharara Repsol 200 42.4
Defa Waha 142 36.6
Butiffel Agip 109 40.8
Galo Waha 98 35.7
Messla Arabian Gulf 97 39.7
Al Ssara Wintershall 95 41.2
El Bouri Agip 64 25.8
Nafora Arabian Gulf 57 35.8
El Ghani Viba 45 40.4

INFRASTRUCTURE PROJECTS IN THE FIELD OF PETROCHEMICALS

REFINING
NOC owns and operates several refining facilities, in addition to many oil and natural gas
processing companies. Close to 380,000 bbl/d of crude is refined by NOCs subsidiaries.
Approximately 60% of refined products are exported, primarily to Europe. These are simple
hydro skimming refineries, but their products meet market specifications due to high quality
crude. As of early June 2007, NOC was evaluating investment proposals for upgrading its Ras
Lanuf refinery. Total cost of the upgrade is estimated at $2 billion. NOC is also expected to
retender an engineering, procurement and construction contract for upgrading the Zawia refinery.
NOC's refineries include:
 [ ]

Table (6) The refinery in Libya.

Refinery Capacity Operator

Zawia Refinery 120,000 ZOC

Ras Lanuf Refinery 220,000 RLOGPC

El-Brega Refinery 10,000 SOC

Tobruk Refinery 20,000 Agoco

Sarir Refinery 10,000 Agoco

1) ZAWIA REFINERY
The Zawia Refinery is an oil refinery located in Az Zawiyah, Libya, which is about 40
kilometres west of Tripoli.

The refinery was discovered in 1974 and it currently produces an estimated 120,000 barrels of
oil per day (bpd). It is a topping and reforming refinery having a
distillation capacity of 6,000 tonnes per annum. The refinery is
operated by the Zawia Oil Refining Company, a subsidiary of the
National Oil Corporation, NOC is expected to re-tender an
engineering, procurement and construction contract for upgrading the
Zawia refinery.

2) RAS LANUF REFINERY

The Ras Lanuf Refinery is a topping and reforming oil refinery in the city of Ras Lanuf, Libya.
It is part of a larger petrochemical complex also consisting of an ethylene plant, a polyethylene
plant, plant utilities, and Ras Lanuf Harbor. The complex is operated by the Ras Lanuf Oil & Gas
Processing Company (RASCO), a subsidiary of the National Oil Corporation.

The Ras Lanuf Refinery became operational during 1984. In 2007, the decision to expand the
refinery for the production of benzene, butadiene was made. For the refinery expansion, NOC
concluded a $2 billion contract with the Star Consortium, a joint company of the Al Ghurair
 [ ]

Investments's subsidiary TransAsia Gas International and ETA Ascon Star Group's subsidiary
Star Petro Energy, to establish a joint venture with Dow Chemical Company.

The refinery has a capacity of 220,000 barrels per day, It is a simple hydro skimming refinery,
but its products meet market specifications due to high quality crude oil. It produces fuel oil, gas
oil, naphtha and kerosene.

3) EL-BREGA REFINERY

The first industrial zone in Libya, developed since the 1960s,

Marsa Al Brega's petrochemical complex produces methanol and
fertilisers. It is run by the National Petrochemical Co. (Napetco) and
consists of: two methanol units each with a capacity of 1,000
bbl/day; two urea units with a total capacity of 2,750 t/d and two
ammonia units with a capacity of 2,200 t/d.

4) SARIR REFINERY

The Sarir refinery started operations in 1989 and has a refining

capacity of 10,000 bbl/d. The fuel supply from the refinery meets
requirements for the Sarir Agricultural Project as well as for the
general area.

5) TOBRUK REFINERY

The Tobruk refinery has been on stream since 1985 and entered the production phase during
1989. In 1990, the refinery operations were transferred to Agoco after being directly managed by
the NOC. In 1996, Tobruk had two thermo-compression distillation units installed to produce
 [ ]

750 cm/d of drinking water from the Mediterranean Sea. The General contractor for the project
was United Kingdom-based Weir Westgarth Ltd., a subsidiary of the Weir Group. Currently,
Tobruk has an estimated capacity of 20,000 bbl/d.

The Marsa El Hariga Terminal (Tobruk) is situated on the southern coast of the Tobruk trading
port. Construction of the terminal started in 1964, and was
completed in 1966. The Marsa El Hariega oil terminal was
officially inaugurated by exporting the first shipment of crude oil
from Sarir in 1967. The crude from Sarir is pumped through a
400-km pipeline, with an auxiliary pumping station between
Sarir and the terminal. Marsa El Hariga has three berths with a
loading capacity of 8,000 tons/hour for tankers of up to 120,000 metric tons deadweight (DWT).
Other ancillary facilities at the terminal include oil products storage tanks with a capacity of
116,500 cubic meters.

PETROCHEMICALS

The Ras Lanuf refinery produces petrochemicals, utilizing naphtha as a feed stock to an
ethylene plant with a capacity of 1.2 million tpy (tons per year). Its main products are ethylene
(330,000 tpy), propylene (170,000 tpy), Mix C4 (130,000 tpy) and P Gasoline (335,000 tpy).
NOC also has two polyethylene plants each with a capacity of 160,000 mt/year. These plants
produce various products which are mostly exported. In Marsa Brega there is another
petrochemical complex using natural gas as a feedstock. In May 2005, Shell agreed to a final
deal with NOC to develop Libyan oil and gas resources, including LNG export facilities. The
plants in this complex are:

Table (7) The plant types in Libya.

Plant Type Capacity
Gas Liquefaction 1,565×1012 cu Ft/d
Ammonia 733,000
Methanol 660,000
Urea 916,000
 [ ]

The deal came after lengthy negotiations on the terms of a March 2004 framework agreement.
Reportedly, Shell is aiming to upgrade and expand Marsa Brega and possibly build a new LNG
export facility as well at a cost of $105-$450 million. The plants in this complex are:

WESTERN LIBYAN GAS PROJECT

The Western Libyan Gas Project (WLGP) between the Libyan National
Oil Corporation (NOC) and the Italian company Eni which came online in
October 2004. By July 2007, 280 billion cubic feet per year of natural gas
was being exported from a processing facility at Melitah, on the Libyan
coast, through the Greenstream pipeline to Sicily. From Sicily, the natural
gas travels to the Italian mainland, and then to the rest of Europe. WLGP is
the first major project to valorize the natural gas produced in Libya through
export to and marketing in Europe. WLGP is supplied from production at
the Bahr Essalam and Wafa fields, which is processed at the onshore
Mellitah treatment plant.

The idea of natural gas from Libya to Italy originating from the 1970s. Feasibility studies were
carried out in the 1980s and 1990s.

THE PIPELINE INSIDE LIBYA

There are many existing pipelines in Libya between the various oil fields between the elephant
field and Mellita and between the Sarir field and Ras Lanuf refinery, most of these pipelines are
intended to deliver oil from different fields to the places of export, distribution and refining.

Table (8) Major Pipelines of Natural Gas inside Libya.

From To Length(Miles) Diameter(inches)

Intisar A Zueitina 1140 20
Naser El Brega 108 36/30
Buttifel Intisar A 85 34
Buttifel Zueitina 83 10
Intisar A Hatiba 74 24
Defa Naser 68 24/8
 [ ]

Table (9) Major Pipelines of Crude Oil inside Libya.

From To Length(Miles) Diameter(inches)

Sarir Mina-El-Hariga 321 34
Messla Ras lanuf 298 36/42
Waha Es Sidra 256 24
Hamada Zawia 242 18
Amal Ras lanuf 170 30
Intisar Zueitina 137 40
Samah Dahara 114 32
Naser El Brega 107 36
Gialo Waha 94 30

Figure (6) The oil& gas pipeline of Libya.

 [ ]

COMPANIES OPERATING IN LIBYA

NATIONAL OIL CORPORATION

FULLY OWNED JOINT VENTURE SHARING AGREEMENT
ARABIAN GULF OIL COMPANY AKAKUS OIL OPERATIONS TOTAL E&P
SIRTE OIL COMPANY
WAHA OIL COMPANY WINTERSHALL

LIBYAN PETROLEUM INSTITUTE MELLITAH OIL & GAS O.M.V

AL WATANIA FOR D & W VEBA OIL OPERATIONS RWE

NORTH AFRICA FOR GEOPHYSICS ZUEITINA OIL COMPANY PETRO CANADA
EXPLORATION

AL JOUF FOR OIL TECHNICAL SHALL

 [ ]

OIL AND GAS DISCOVERIES IN THE PAST THREE YEARS

After Libya began in the contracting of new oil concessions after long years of embargo and
the economic recession started in many companies the discovery of new oil fields in most basins
of Libya, we will in this part the most important of these discoveries in the past five years (2005-
2010) and locations of the discoveries:

Figure (7) The oil & gas discoveries in Libya.

In 2005 Repsol YPF has made a discovery of light crude in the prolific Murzuq basin, in Libya.
During production testing, the well had a natural flow of 2,060 barrels per day. Oil was found at
a depth of 1,717 meters, in the NC186 exploration block, 800 km. south of Tripoli, in the Sahara
desert. Repsol YPF is operator of this block, with a 32% stake, in partnership with the Libyan
National Oil Company and three European companies: OMV (Austria), Total (France) and
Hydro (Norway).

In 2006 AGOCO (Arab Gulf Oil Company), a national oil company owned 100% by NOC, has
made a major oil discovery in Block NC4 at Ghadames Basin, around 250 km south of
 [ ]

Tripoli. The discovery is in the new wildcat Well A-NC4 at a depth of 10,500 feet, in the middle
and lower Akakus formation, through a choke of 1.5 inches.

The average daily production, upon well test, reached about 15,933 oil barrels and 14 million
cubic feet of gas. Preliminary leads indicate that this discovery is very important. Further tests
are being performed to determine the overall reserves, as well as recoverable reserves

In January 2008 NOC announces that Arabian Gulf Oil Company (AGOCO)
has made a new oil discovery in the well D1-NC7-A (New Field Wildcat well)
in Ghadames Basin. The well is located approximately 500 m south of Tripoli,
and 170 km west of Hamada Oil field.

In October 2008 NOC Libya announces that Sirte Oil Company, a wholly owned subsidiary,
has made a new oil discovery in the well A1-NC216A, a new wildcat well in Ghadames Basin.
The well is located approximately 310 km south west of Tripoli.

In the November 2008 RWE Dea, which is engaged in oil and gas exploration and production,
has announced an oil discovery in the Sirte Basin, Libya, following three oil discoveries in
Concession NC193 and one in Concession NC195 since late 2006, a second discovery in NC195
further strengthens RWE Dea's position in Libya.

The exploration well B1-NC195 encountered gas/condensate in the Dahra Formation at a depth
of 5,187 feet and oil in the Beda Formation at a depth of 5,541 feet, subsequent production tests
successfully established an oil flow of 840 barrels per day (bbls/day) from the Beda and a gas
flow of 15.4 million square cubic feet per day plus 204bbls/day of condensate from the Dahra
reservoir.

In 2009 the oil companies which discovered those deposits were, the Austrian company,
Woodside, which discovered an oil deposit in the basin of Ghadames, about 900 km South of
Tripoli and the Canadian company, Verenex which discovered a gas deposit in Ghadames.
 [ ]

The Algerian company, Sonatrac also announced discovery of oil deposits in the basin of
Ghadames, 230 km south of Tripoli, while the Spanish company, Repsol discovered on-shore oil
reserves from 40 km south-west of Benghazi, 1,050 km east of Tripoli, similarly, the Libyan
company, Golf Arabic Petroleum, discovered oil deposit at 190 km south of Tripoli in the basin
of Ghadames and the Russian company, Tatnafet discovered an oil deposit in the basin of
Ghadames, 345 km south of Tripoli.

The US Company, Hess, also discovered onshore oil and gas in the deep seas of the
Mediterranean, 56 km north of the Libyan coasts on the Gulf of Sirte central Libya.

NOC announced on July 2010 that Libyan Investment Authority

(LIA) & Medco(Verenex Energy) International Ventures Limited
being partners in an Exploration and Sharing agreement, report initial information concerning the
exploration well N1-47/02 New Field Wildcat in Ghadamis Basin. The well is located
approximately 200 km Southwest of Tripoli.

NOC announced on September 2010 that Arab Gulf Oil Company which is fully owned by
NOC and operator explored a new oil exploration in the exploration well (H1-MN 4) to a final
depth of about 10,200 feet. The well is located in Ghadamis basin, 190 km South Tripoli town.

SALE OF TECHNICAL INFORMATION OF NEW CONTRACTS IN 2011

Next year (2011) the fifth round of exploration and production sharing agreement for a
number of concessions on the various basins of Libya, the National Oil Corporation has begun to
sell the technical information of these concessions on its website include three concessions in the
Sirte Basin, two concessions in the basin Murzuq and ten concessions in the Sirte Basin.

The National Oil Corporation in accordance with its long term objectives to increase oil and
gas production capacity has decided to offer in this particular public bid round a selection of the
prospective gas Areas throughout the prolific geologic basins of Libya, the National Oil
Corporation did not announce the time of this round and say this round will not begin to stabilize
the world oil price above $ 100 a barrel, which decreased due to the effects of global crisis.
 [ ]

PROBLEMS FACED BY THE ENERGY INDUSTRY IN LIBYA

The most important problems facing the energy industry in Libya is in four main areas are as
follows:

1) Despite all the plans and budgets, economic and social development during the last
period in achieving the goal of diversity of sources of national income to reduce
dependence on oil as a non-renewable resource, but these strategies did not achieve its
goal.
2) Most oil companies in Libya are going to burn the gas associated with
crude oil, despite the massive reserves of natural gas in Libya, but the
National Oil Corporation did not turn to gas, except in recent years.
3) Despite the existence of Libya in the geographic location allows them to invest in solar
energy , and studies have shown that the average annual solar radiation on the surface of
the earth coastline ranges between 5.5 kW / hours a day, 7 kilowatt / hours a day in
southern areas, the duration of the brightness of the sun up to approximately 3100 hours a
year on the coastal strip, and about 3900 hours per year in southern areas, which indicates
the importance of sun a source of energy , but the real projects not yet begun.
4) The Libyan citizen does not have a culture of rationalization of energy consumption,
which increases the rate of consumption in Libya

PROPOSED SOLUTIONS TO THE PROBLEMS OF ENERGY IN LIBYA

There are many solutions to energy problems in Libya, but we will mention some of them:

1) The Citizens need to rationalize energy consumption in Libya reasonably.

2) Start in the use of solar energy and wind energy, especially in remote
areas and farms.
3) Continue in rounds of exploration and production sharing agreement
carried out by the National Oil Corporation to explore new fields in
Libya.
4) The National Oil Corporation must develop of oil fields in Libya, as well as the
development of gas industry and to begin operations in gas liquefaction.
 [ ]

CONCLUSIONS
The Libyan economy is heavily dependent on the hydrocarbon
industry which, accounted for over 95 percent of export earnings,
Libya holds around 44 billion barrels of oil reserves, the largest in
Africa, and slightly over 54 trillion cubic feet (tcf) of natural gas
reserves.

Libya is a full member in the OPEC, Libya has joined in 1962, two years after the founding of
the Organization, the OPEC Organization of the Petroleum Exporting Countries is an
international organization OPEC consists of twelve members, which are heavily reliant on oil
revenues as their main source of income.

Oil reserves in Libya are the largest in Africa and the ninth largest in the world with 44.1billion
barrels as of 2009 after new explorations, that giving Libya 66 years of reserves at current
production rates if no new reserves were to be found.

Libya includes several hydrocarbon provinces of which the most important is Sirt Basin. This
Basin contains some sixteen giant oil fields with about 117 Billion barrels of in place proven
recoverable oil . These form 89% of all the discovered Libyan petroleum reserves. This basin is
considered to be the most prolific oil basin in north Africa with an oil gravity that ranges
between 44 and 32 API, and a sulphur content of between 0.15 and 0.66%.

Libya produces approximately 1.8 million barrels of oil per day during this year after it was
decided that production will increase to 2 million barrels a day however, because of the
international crisis and the decision of OPEC to reduce production the Libyan plan to increase
production of 3 million barrels a day by the year 2012 has been postponed. But as far as gas then
Libya will increase production of gas from 2.7 billion cubic feet to more than 3.8 billion cubic
feet with the start of the year 2014 and 2015 such that Libya becomes a major gas producer.
 [ ]

REFERENCES

 Dr.RAHUMA.M.KHULUD (2009), World Political Affecting on oil price, Petroleum

Seminar/Al Fateh University, Tripoli, Libya.
 DR. SHOKRI M. GHANEM (2008), Regarding the Approval of the Unified Policy for
Contracting at the Oil Companies Affiliated to the National Oil Corporation , NOC ,Tripoli,
Libya.
 MR. ABDULLAH EL-BADRI (2005) , Libya’s oil riches a wait, NOC ,Tripoli, Libya.
 BP Statistical Review of World Energy/June 2010.
 C.J LEWIS (1990) Sarir Field: Sirte Basin, Libya.
 Energy Information Administration (2007) Libya: Country Analysis Brief.
 World Bank (2006), Libyan Arab Jamahiriya: Economic Report, Social & Economic.
Development Group: MENA Region.
 P. MOBBS (2002) Mineral Industry of Libya.
 THOMAS S. AHLBRANDT (2001) The Sirte Basin Province of Libya: Sirte-Zelten Total
Petroleum System U.S. Geological Survey.
 OTMAN, WANISS A.; KARLBERG, ERLING (2007), The Libyan Economy: economic
diversification and international repositioning, Springer.
 VANDEWALLE, DIRK J. (2006), A history of modern Libya, Cambridge University Press.
 WADDAMS, FRANK C. (1980), "The Libyan Petroleum Law of 1955", The Libyan oil
industry, Croom Helm series on the Arab world, Taylor & Francis.

WEBSITES
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 en.wikipedia.org

 www.energyandcapital.com