National Oil Corporation
This article's factual accuracy may be compromised due to out-of-date information. (December 2011) |
Company type | |
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Website | NOC.ly/index.php/en |
The National Oil Corporation (NOC;
Libyan oil sector: overview
Libya is a member of the
History
Early years
Libya has attracted
Nationalization and the Arab oil embargo
In the 1970s Libya initiated a socialist style nationalization program under which the government either nationalized oil companies or became a participant in their concessions, production and transportation facilities.
U.S. sanctions
The last phase of the socialist period was characterized by an intensive effort to build industrial capacity, but falling world oil prices in the early 1980s dramatically reduced government revenues and caused a serious decline in Libya's advantage in terms of energy costs.[9] More importantly, accusations of terrorism and Libya's growing friendship with the Soviet Union led to increased tensions with the West. On 10 March 1982, the U.S. prohibited imports of Libyan crude oil. Exxon and Mobil left their Libyan operations by January 1983. In March 1984, controls were expanded to prohibit exports to the Ras al-Enf petrochemical complex.
President Ronald Reagan imposed sanctions on 7 January 1986 under the International Emergency Economic Powers Act, prohibiting US companies from any trade or financial dealings with Libya, while freezing Libyan assets in the US.[10] On 30 June 1986, the US Treasury Department forced remaining US oil companies to leave Libya but allowed them to negotiate standstill agreements, retaining ownership for three years while allowing NOC to operate the fields. As a result, Amerada Hess, Conoco, Grace Petroleum, Marathon, and Occidental left a production entitlement that was generating 263,000 bbl/d (41,800 m3/d). Negotiations with NOC and US oil companies over assets dominated much of the late 1980s.
Libya responded by concluding its third Exploration and Production Sharing Arrangements (EPSA-III) in 1988, including agreements with
U.N. sanctions and afterward
Libya's isolation became even more pronounced following the 1992 imposition of United Nations sanctions designed to force Gaddafi to hand over two suspects indicted for the 1988 bombing of Pan Am Flight 103 over Lockerbie, Scotland. The sanctions, imposed on 31 March 1992, initially banned sales of equipment for refining and transporting oil, but excluded oil production equipment. Sanctions were expanded on 11 November 1993, to include a freeze on Libya's overseas assets, excluding revenue from oil, natural gas, or agricultural products. Under these condition, NOC Chairman Abdallah al-Badri emphasized reducing new projects and upgrading domestic facilities. Joint ventures were initiated with Veba, Petrofina, North African Petroleum, the Petroleum Development Co. (Republic of Korea) and Lasmo. Foreign operators were encouraged to produce exclusively for export, limited to national oil companies with pre-sanctions equity in Libya. This policy was an attempt to contain the amount of crude offered on the spot market through third-party traders, and increase downstream investment. In 2000, NOC was reorganized by the General People's Congress after the Ministry of Energy was abolished, further consolidating control over the sector.
Although U.N. sanctions were suspended in 1999, foreign investment was curtailed due to the U.S.
Libyan civil war and transition
During the
Operations
On 30 January 2005, Libya held its first round of oil and natural gas exploration leases since the US ended sanctions: 15 areas were offered for auctions. In October 2005, a second bidding round was held under EPSA IV, with 51 companies taking part and nearly $500 million worth of new investment flowing into the country as a result. In December 2006, Libya held its third bidding round; however, PSAs were still being signed by NOC as of April 2007.
Libya has substantial potential for exploration with an average of 16 wells per 10,000-km, whereas similar countries usually average 50 (the world average is 105).[17]
In November 2016, the group chairman, Mustafa Sanalla, announced the group is seeking to boost output to 900,000 barrels a day by the end of 2016 and about 1.1 million barrels next year.[18]
Upstream activities
Oil and gas E&P is carried out by NOC subsidiaries and IOCs licensed by special participation and PSAs. These activities cover wide areas, both onshore and offshore, through Libya's territorial waters and
NOC hopes to increase total oil production from 1.80 mmbd in 2006 to 2 mmbd by 2008. Foreign direct investment into the oil sector is likely, which is attractive due to its low cost of oil recovery, high oil quality, and proximity to European markets.[21]
Field development and exploration
In November 2005, Repsol YPF discovered a significant oil deposit of light, sweet crude in the Murzuq Basin. Industry experts believe the discovery to be one of the biggest made in Libya for several years. Repsol YPF is joined by a consortium of partners including OMV,
WOCs Waha fields currently produce around 350,000 bbl/d (56,000 m3/d). On 29 December 2005,
In October 2013, Libya's oil minister Abdelbari Arusi revealed that the NOC was considering buying Marathon's stake in Waha.[23] In December 2019, NOC stated that it had approved France's Total purchase of stakes in the country's Waha concessions.[24]
Downstream activities
Refining
NOC owns and operates several refining facilities, in addition to many oil and
Refinery | Capacity | Operator |
---|---|---|
Zawia Refinery | 120,000 | ZOC |
Ra's Lanuf Refinery |
220,000 | RLOGPC |
Brega Refinery | 10,000 | SOC |
Tobruk Refinery | 20,000 | Agoco |
Sarir Refinery | 10,000 | Agoco |
Notes:
1. Amounts in barrels per day.
Petrochemicals
The Ra's Lanuf refinery produces
Plant Type | No. | Capacity |
---|---|---|
Gas Liquification | 1 | 1,565×10 12 cu ft/d (44,300 km3/d) |
Ammonia | 2 | 733,000 |
Methanol | 2 | 660,000 |
Urea | 2 | 916,000 |
Notes:
1. EIA 2007 (In mt/yr unless stated otherwise)
Exports
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
With domestic consumption of 284,000 bbl/d (45,200 m3/d) in 2006, Libya had estimated
Energy overview
Statistic | Amount |
---|---|
Proven oil reserves (2007E) | 41.5 b/bbl |
Oil production (2006E) | 1.8 mmbd (95% crude) |
Oil consumption (2006E) | 284,000 bbl/d (45,200 m3/d) |
Net oil exports (2006E) | 1,525 Mbpd |
Crude oil distillation capacity (2006E) | 378 mbpd |
Proven natural gas reserves (2007E) | 52.7 tcf |
Natural gas production (2006E) | 399×10 9 cu ft (1.13×1010 m3) |
Natural gas consumption (2005E) | 206×10 9 cu ft (5.8×109 m3) |
Notes:
1. Energy Information Administration (2007)
See also
- Challenger LTD
- Sonatrach
- Hassan Tatanaki
- Joint venture with Yara International and Libyan Investment Authority
- List of Libyan companies
References
- 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
- P. Mobbs (2000) Mineral Industry of Libya
- Thomas S. Ahlbrandt (2001) Sirte Basin Province: Sirte-Zelten Total Petroleum System U.S. Geological Survey
- National Authority for Information and Statistics, Socialist People's Libyan Arab Jamahiriya.
- Pilat D. (2000), Innovation and Productivity in Services - State of the Art, Organization for Economic Cooperation and Development, Directorate for Science, Technology, and Industry
External links
- Official National Oil Corporation website—(in English)
- GPCO.gov website
- Mof.gov.ly: اللجنة الشعبية العامة للمالية—(in Arabic)
- Fita.org: Country Profile of Libya Archived 2013-09-10 at the Wayback Machine
- Cbl-ly.com: Central Bank Of Libya Economic Bulletin
- Libya Connected.com: Business In Libya
Notes
- ^ [Hargreaves, Steve (October 25, 2011) Libya oil eyed by Western companies. Retrieved from CNN website on Oct., 25, 2011 from http://money.cnn.com/2011/10/25/news/international/libya_oil/index.htm Archived 2011-10-27 at the Wayback Machine]
- ^ a b EIA 2007
- ^ T. Ahlbrandt (2001) p.1
- ^ World Bank (2006)
- ^ T. Ahlbrandt (2001) p.7
- ^ Omar Muntasir served as NOC Chairman until 1980
- ^ Library of Congress, 1987
- West Germanrefining & marketing company
- ^ World Bank (2002) p.7
- ^ "An overview of O.F.A.C. Regulations involving Sanctions against Iran" (PDF). U.S. Department of the Treasury Office of Foreign Assets Control. 2001-07-26. Archived from the original (PDF) on 2013-10-04. Retrieved 2017-08-23.
- ^ Associated Press (2006-05-16). "U.S. Removes Libya From Terrorism List". Channel One Network. Archived from the original on 2006-05-17. Retrieved 2012-07-22.
- from the original on 2018-01-07. Retrieved 2018-01-06.
- ^ "Libya: Oil Minister Shukri Ghanem 'defects'". BBC News. 17 May 2011. Archived from the original on 2 January 2012. Retrieved 26 December 2011.
- ^ "Libya Appoints Former Eni Veteran Ben Yezza as Oil Minister". Businessweek. 24 November 2011. Archived from the original on 14 January 2012. Retrieved 26 December 2011.
- ^ "Libya Oil Chiefs Unify State Producer to End Row on Exports". Bloomberg News. 3 July 2016. Archived from the original on 2 February 2017. Retrieved 10 March 2017.
- TheGuardian.com. 2 July 2018. Archivedfrom the original on 2018-07-04. Retrieved 2018-07-04.
- ^ Intsok Onshore Market Report 2006[permanent dead link]
- ^ "Libya to Nearly Double Oil Output as OPEC's Task Gets Harder". Archived from the original on 2017-02-02.
- ^ a b U.S. Securities and Exchange Commission, 2005, p. 21
- ^ P. Mobbs (2004) p. 19
- ^ International Crude Oil Market Handbook
- ^ Marathon Oil Corporation Annual Report 2005 Archived 2007-01-11 at the Wayback Machine, p. 50
- ^ "Libya's NOC interested in Marathon Oil stake in Waha Oil". Oil Review Africa. 4 October 2013. Archived from the original on 10 June 2015. Retrieved 9 October 2013.
- ^ "Libya approves Total's purchase of stake in Waha concessions". Reuters. 2019-12-10. Archived from the original on 2019-12-10. Retrieved 2019-12-10.
- ^ EIA (2007) p.7