Libya Oil Almanac - OpenOil

147 Pages·2013·1.16 MB·English

Libya Oil Almanac
An OpenOil Reference Guide
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Table of Contents
List of Abbreviations............................................................................................................7
Preface..................................................................................................................................9
History and Context
Libya's Oil Industry pre-1969............................................................................................10
Libya's Oil Industry Under Gaddhafi................................................................................10
Libya's Membership of OPEC.............................................................................................14
Sanctions Against Libya.....................................................................................................16
Libya's reintegration in the international community..................................................19
Libyan Oil Industry post-2011...........................................................................................21
Corruption in Libya............................................................................................................22
Shipping in Libya...............................................................................................................24
Energy Industry Background
Libyan Hydrocarbon Reserves and Production...............................................................27
Dependence on Extractives Revenues..............................................................................29
The 'Energy Mix'................................................................................................................30
Generic Oil and Gas Terms
Resource Curse...................................................................................................................33
Definition of Hydrocarbon Reserves................................................................................36
Crude Oil Qualities.............................................................................................................38
Oil Field Depletion..............................................................................................................40
Enhanced Oil Recovery (EOR)...........................................................................................41
Offshore Drilling................................................................................................................42
Natural Gas.........................................................................................................................45
Natural Gas Flaring............................................................................................................46
Fuel Subsidies.....................................................................................................................47
Oilfield services industry..................................................................................................50
Regulatory Framework
Overview of Libyan Regulation.........................................................................................53
EPSA III................................................................................................................................55
EPSA IV................................................................................................................................56
Types of Oil Contracts........................................................................................................58
International Entities
Operating Environment in Libya......................................................................................62
BP.........................................................................................................................................63
China National Petroleum Corporation...........................................................................65
ConocoPhillips....................................................................................................................67
Eni........................................................................................................................................69
ExxonMobil.........................................................................................................................71
Gazprom..............................................................................................................................73
Hess Corporation................................................................................................................76
Marathon Oil Corporation.................................................................................................77
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Occidental Petroleum........................................................................................................79
OMV.....................................................................................................................................81
PetroCanada/Suncor.........................................................................................................84
PGNiG..................................................................................................................................86
Repsol YPF..........................................................................................................................87
Shell.....................................................................................................................................89
Statoil..................................................................................................................................91
Total....................................................................................................................................93
Wintershall.........................................................................................................................95
State Entities
Libyan Ministry of Oil........................................................................................................98
Central Bank of Libya (CBL)..............................................................................................98
Libyan Investment Authority (LIA)..................................................................................99
Tamoil...............................................................................................................................102
Libyan NOC and its subsidiaries
Libyan National Oil Corporation (NOC)..........................................................................104
Arabian Gulf Oil Company (Agoco).................................................................................106
Brega Petroleum Marketing Company...........................................................................107
Zawia Oil Refining Company...........................................................................................107
Sirte Oil Company (SOC)..................................................................................................108
Joint Ventures
Akakus Oil Operations (AOO)..........................................................................................109
Harouge Oil Operations (HOO)........................................................................................110
Mabruk Oil Operations (MOO)........................................................................................111
Mellitah Oil and Gas (MOG).............................................................................................113
Waha Oil Company (WOC)...............................................................................................114
Zuetina Oil Company (ZOC).............................................................................................115
Key Infrastructure
Overview of Infrastructure.............................................................................................117
Terminals and refineries
Es Sider Terminal.............................................................................................................118
Ras Lanuf Refinery and Terminal...................................................................................119
Brega Complex.................................................................................................................120
Sarir Topping Facility......................................................................................................121
Tobruk Refinery and Terminal.......................................................................................122
Zawia Refinery and Terminal.........................................................................................122
Other projects
Western Libya Gas Project (WLGP).................................................................................123
Petrochemical Facilities..................................................................................................125
Oil and Gas Fields
Overview of Libyan Geology............................................................................................127
Overview of Biggest Producing Fields............................................................................129
List of Other Fields...........................................................................................................132
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Resource Transparency Opportunities
Resource Transparency Movement in Libya.................................................................134
Transparency of Contracts..............................................................................................135
Extractive Industries Transparency Initiative (EITI)....................................................137
Transparency International............................................................................................139
Revenue Watch Institute (RWI)......................................................................................142
Global Witness..................................................................................................................143
Publish What You Pay (PWYP)........................................................................................144
Natural Resource Charter (NRC).....................................................................................146
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Major oil and gas fields and infrastructure in Libya
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List of Abbreviations
AOO Akakus Oil Operations
boe barrels of oil equivalent
bpd barrels per day
CBI Central Bank of Libya
EIA US Energy Information Administration
EITI Extractive Industries Transparency Initiative
EOR Enhanced oil reccovery
FTP Final Tender Protocol
GNMTC General National Maritime Transport Company
HOO Harouge Oil Operations
IEA International Energy Agency
IMF International Monetary Fund
IOC International oil company
ITP Initial Tender Protocol
LFB Libyan Foreign Bank
LIA Libyan Investment Authority
LNG Liquefied Natural Gas
LPG Liquid Petroleum Gas
NOC Libyan National Oil Company
MOG Mellitah Oil and Gas
MOO Mabruk Oil Operations
NRC Natural Resource Charter
NTC National Transitional Council
OPEC Organisation of Petroleum Exporting Countries
PSA Production Sharing Agreement
PSC Production Sharing Contract
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PWYP Publish What You Pay
RWI Revenue Watch Institute
SOC Sirte Oil Company
SPM Single point mooring
tcf trillion cubic feet
tcm trillion cubic metres
TI Transparency International
TSC Technical service contract
TTSF Training, Technology and Scholarship Fund
UN United Nations
WOC Waha Oil Company
ZOC Zuetina Oil Company
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History and Context
Libya's Oil Industry pre-1969
In 1950 a Constitution was established in Libya and King Idris declared the country's
independence from the United Kingdom.1
Soon after the new Libyan kingdom was created, the UK and the United States ob-
tained rights to build military bases in Libya. In 1956 the first concessions for oil ex-
ploration were granted to foreign companies and in 1959 the first successful drilling
was reported when Zletin oil field, one of the largest in the country, was discovered by
Esso Libya.2 Libya became an oil exporter in 1961 with the completion of a 167 kilo-
metre pipeline linking important oil fields in the interior to the Mediterranean Sea.3
This marked the beginning of a spectacular production rise that would surpass 3 mil-
lion barrels per day (bpd) in 1969.1
With the discovery of significant oil reserves in 1959, Libya moved abruptly from being
dependent on international aid and the rent from US and British air bases to being an
oil-rich monarchy.4 However, equity was lacking and popular resentment grew as oil
exports grew, setting the stage for the young Colonel Muammar Gaddhafi's bloodless
coup d'etat in 1969.1
Libya's Oil Industry Under Gaddhafi
Overthrow of the monarchy in 1969
When Libyan King Idris was overthrown in a coup led by the 27-year-old Muammar
Gaddhafi, the country and its oil industry embarked upon a radically new chapter. Ac-
cording to the US State Department the early years following the revolution can be
seen to be divided into three recognisable political phases:
1. 1969-70: a new political and organisational model was sought to overcome the
shortcomings of the preceding monarchy.
2. 1971-75: the Arab Socialist Union was established as the sole political party, based
on the Nasserite Constitutional model (which came into force in Egypt in 1971, based
1 'Everything You Need To Know About The Libyan Oil Industry', Business Insider, 22 February
2011.
2 'Libya: What Happened and When ?', Libya: Our Home, retrieved 19 October 2011.
3 'History, Kingdom Established', Countries Quest, retrieved 25 October 2011.
4 'The Discovery of Oil', Encyclopaedia Britannica, retrieved 25 October 2011.
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