Top Oil Companies in Libya

Top Oil Companies in Libya

Marcopolis.net presents top oil companies in Libya.

Oil and Gas sector (hydrocarbons) have been dominating the Libyan economy and will continue to do so. Libyan oil and gas sector accounts for more than 70% of the GDP, more than 95% of exports and approximately 90% of government’s revenues.

Top Oil Companies in Libya

According to the IMF report, “Oil and Gas sector (hydrocarbons) have dominated – and will continue to do so – the Libyan economy. Oil and gas account for more than 70% of the GDP, more than 95% of exports, and approximately 90% of government revenue.” Libya is home to about 3.5% of the world’s proven crude oil reserves and has the largest oil reserves in Africa (60 billion barrels – according to NOC / 41 billion according to BP statistical survey and 1500 billion m3 of gas). Prior to the uprising that toppled the long term dictator the country was producing 1.77 million barrels of oil per day (equivalent of 2% of the global output) and 0.2 million barrels-equivalent of natural gas. The plan is to produce 3 million barrels of oil per day and 2600 cubic feed of gas a day.

The sector is dominated by the 2 state owned National Oil Corporations and  Arabian Gulf Oil Company (Agoco), a wholly owned subsidiary of Libya’s National Oil Corporation (NOC). Many foreign IOC are present in the market through joint ventures, EPSA agreements, concessions and fully owned subsidiaries of NOC. The government has also signed several EPSAs with international oil companies. Although these agreements were signed by the former regime, they remain in existence, and, according to multiple sources, will remain valid.

The sector was impaired by the revolution and as a consequence, crude oil production fell to 22,000 barrels of oil per day in July 2011. Although, the production has been restored to the pre-war level, following the 30 years of the regime and the UN embargo the sector remains starved of much needed investment, technology and needs an complete upgrade. It is estimated that at least $30-40 billion is needed to upgrade the capacities.
According to the Chairman of NOC, the largest oil company in Libya, “the country can produce oil at competitive production prices for another 50 years.”

Recently, the Libyan authorities have been working on a multi-billion dollar investment plan and a new round of licensing should begin within the next few years. The sector offers many investment opportunities, especially in the field of small to medium sized oil and gas service companies. The government’s medium term goal is to build several refineries to satisfy the domestic demand for gasoline, that is currently imported from Italy. According to industry experts the sector employs about 47,000 people.

Prior to the revolution, Libya attracted investment from international oil companies including Eni SpA, BP, ConocoPhillips, Total and Repsol as the country sought to raise production capacity to 3 million barrels a day. In 2009, Libya approved a 12.1 billion-dinar ($9.8 billion) plan to develop and upgrade 24 oil fields.

While it is easy to distinguish the national players, the IOC are often locked in a convoluted ownership and concession schemes. Thus a clear structure of how many companies are operating in Libya is difficult to quantify. Aside from the domestic companies, Libya owns several international oil companies such as Tamoil, OilLibya.

Top Oil Companies in Libya

 National Oil Corporation
The National Oil Corporation (NOC) is the national oil company of Libya. It dominates Libya’s oil industry, along with a number of smaller subsidiaries, which combined account for around 70% the country’s oil output.[1] Of NOC’s subsidiaries, the largest oil producer is the Waha Oil Company (WOC), followed by the Arabian Gulf Oil Company (Agoco), Zueitina Oil Company (ZOC), and Sirte Oil Company (SOC).

 Agoco
A wholly owned subsidiary of Libya’s National Oil Corporation (NOC). Agoco’s roots go back to 1971 when the Arabian Gulf Exploration Company (AGECO) was established, following the implementation of Law No. 115, issued by the Libyan Revolutionary Command Council nationalizing shares held by British Petroleum (BP). Agoco was formed by the NOC in late 1979 to take over the assets of a partnership of BP and Nelson Bunker Hunt of the United States, and a partnership of Chevron and Texaco called Amoseas. Agoco has upstream operations in eight oil fields, including Sarir, Messla, Nafoora, Beda and Hammada. The company also operates an oil terminal and a refinery in Tobruk and Sarir.

 Sirte Oil Company
Sirte Oil Company (SOC) is an oil and gas company of Libya operating under the state-owned National Oil Corporation (NOC). The company is located in Brega SOC’s operations include oil and gas exploration and production (E&P) and manufacturing.

 Waha Oil Company (Marathon Oil, ConocoPhillips, Hess Corporation and NOC)
Marathon Oil is a member of the Waha Group, which acquired exploration and production rights in Libya in the mid-1950s. Marathon Oil and ConocoPhillips each hold a 16.3 percent working interest in the Waha Concessions, Hess Corporation an 8.2 percent working interest and the Libyan National Oil Corporation (NOC) holds a 59.2 percent working interest. The Libya Waha Group is the operator.
The Concessions encompass almost 13 million gross acres in the Sirte Basin. This basin is one of the most prolific oil and natural gas producing areas of Libya, containing sizable undeveloped oil and natural gas resources. Estimated 2P net resource is 1.1 bboe.

 Zueitina Oil Company
Based on the frozen assets of Occidental International in 1986, and in compliance with the regulations of the General People’s Committee Decision No. 351/1986, dated on Ramadan 24/1395 (June I, 1986), Zueitina Oil Company was incorporated as a Libyan owned company with a mandate to carry out the whole range of oil operations at the provided areas. This action was completed in accordance with the concession contracts, which are subjected to the Joint and Sharing Agreements made between the National Oil Corporation (NOC), Occidental International, American, and OMV Libya Ltd. of Austeria. After the termination of the frozen period and the return of partners, EPSA 4 Agreement was signed on 23 June 2008.

 Mellitah Oil & Gas B.V
Libyan Branch was established by General Peoples Committee Resolution No. 253 for the year 2008 issued on 21/04/2008 in accordance to an agreement concluded between the National Oil Corp. and Eni North Africa (the Italian oil consortium) on 16/10/2007. This Agreement stipulates on amalgamation of the assets and activities of both Eni Oil and Mellitah Gas, to start effective as of 01/01/2008. The NOC also signed on 30/10/2008, an Agreement of Shareholders upon which Mellitah Oil & Gas is assigned to manage and operate the Oil Operations of the Concessions signed on 12/06/2008.

This Agreement included six agreements of EPSA 4. Thus, Mellitah Oil & Gas ranks as the biggest oil Company in Libya by producing 600,000 equivalent oil barrel/day (Crude Oil, Natural Gas, Condensed Gas: Propane, Butane and Nafta) in addition to a daily production of 450 tons of Sulphur. The Company manages several onshore fields spread across the country. It also manages offshore fields consist of three platforms and a floating tank. Moreover, it manages a network of onshore pipe lines of various sizes extended for thousands of kilometers. The company is exporting part of the processed natural gas from Mellitah Industrial Complex through an offshore pipe line of 32 inches/516 km connecting Mellitah Industrial Complex to the southern coast of Italy, and managed by the Green Stream. This offshore export Line is considered to be the first link between Libya and Europe.

Mellitah Oil & Gas is also participating in covering a great deal of the needs of the natural Gas local consumption which feeds Generating power stations. 

Top International Oil Companies in Libya

Occidental Petroleum
Oxy began operations in Libya in 1965, and in 1967 made the first of several giant discoveries. Oxy was the first American company to resume oil operations in Libya after U.S. sanctions were lifted in 2004. Today, Oxy participates with Libya’s National Oil Company in the production operations of various oil fields in the Sirte Basin. Additionally, Oxy participates in several on-shore exploration blocks.

Repsol
Repsol has almost 1% of the total assets corresponding to exploration and production of hydrocarbons deployed in Libya. Currently, the company has 9 blocks of which 7 are exploratory and 2 are in operation.

Total
Total has been present in Libya for the past 50 years. Today, Total E&P Libye is in partnership with the National Oil Corporation on a number of projects, among which the development of the Mabruk field in the East Libyan Basin of Sirt, and the Al Jurf field at sea, next to the Tunisian border.  Both these projects are operated by a sister company, Compagnie des Pétrole Total Libye (CPTL).

Total E&P Libye signed with NOC exploration and production agreements on the area A42 in Cyrenaica, as well as on the areas NC191-192 in the Murzuk.

Mabruk Oil Operations is one of the oil companies operating on behalf of NOC (National Oil Corporation ) & Total E&P. Mabruk Oil Operations employees around 379 employees in 2008 of which 59 are expatriates and 320 are locals. They are distributed among its 3 main operational sites (see below) and its main offices located at Dhat El Imad Complex in Tripoli. Mabruk Oil Operations operates 2 main oil fields (onshore & offshore) and posses the following sites: • Mabruk Field: is an onshore field located about 170 kilometers to the south of Sirt town (Middle Eastern Libya – see location map). It was discovered in 1959 by LIAMCO (Libyan American Company), but was never developed due to the adverse characteristics of its carbonated reservoirs. The development of the Mabruk oil field started in 1994 and has required the setup of innovative technologies to bring about a successful economic production from a tight and complex oil field (horizontal and multilateral drain drilling technology). 

ExxonMobil
In 2008 the National Oil Corporation signed an Exploration and Production Sharing Agreement with ExxonMobil Libya limited, the Agreement covers the offshore Area (21). Under this agreement the company is committed to a minimum work program of 4,000 km of 2D, 2,000 km2 of 3D and (1) exploration well, at a cost of 97 million US Dollars.

The company will pay a signature bonus of 72 million US Dollars one month following GPC approval and after the effective date, 25 million US Dollars to fund training programs and/or scholarships during the exploration period, and 3 million US Dollars for enhancement of schools in Libya.

Suncor
The Exploration & Production business at Suncor has significant onshore acreage holdings in Libya, held via Exploration and Production Sharing Agreements (EPSAs). These EPSAs could provide access to significant production over the next 25 years, access to low-cost production growth opportunities through the redevelopment of existing fields, as well as opportunities to explore in the prolific Sirte Basin. Exploration in Libya was put on hold in 2011 when Suncor entered force majeure status due to civil unrest. The period of force majeure under its contractual obligations has since ended in Libya, including with respect to exploration activities. The company is currently assessing its ability to restart exploration activities in the second half of 2012.
Harouge Oil Operations — a joint venture that Suncor has a 49% working interest in — began re-starting production in late 2011. As of September 30, 2012, Suncor’s working interest production from Libya was approximately 39,800 bbls/day, and the company is cautiously optimistic about a full return to business in Libya.

Tatneft
Tatneft, Russia’s sixth largest oil company was also its first to enter Libya in 2006, when it secured acreage in the Ghadames basin in Block 82/4. It also has rights to other blocks in the Ghadames and Sirte basins. OC owns refining, and oil and gas processing companies, operating refineries such as Zawia and Ras Lanuf refineries, ammonia, urea and methanol plants, the Ras Lanuf petrochemical complex and the gas processing plan.

Top Oil Service Companies in Libya

 Jowfe Oil Technology
Jowfe Oil Technology JOT) is a state-owned Libyan petroleum services company providing oilfield chemicals and drilling equipment. JOT was founded in 1983 and registered under no. 7102 as a service company owned by the National Oil Corporation (NOC).

Top Oil Distribution Companies in Libya

Brega Marketing Company
Brega Marketing Company is a Libyan national company owned by the Libyan National Oil Corporation. Its main activities are marketing oil and related products. The company was established in 1974.

Mellitah Oil & Gas B.V Libyan Branch

 Tamoil
Tamoil is the trading name of the Oilinvest B.V. Group, a European based downstream oil group from Netherlands. The Tamoil Group, which was purchased by Libyan state entities in the late 1980s, is involved in supplying, trading, refining and selling petroleum products. As of December 2010, the Tamoil Group has approximately 2,700 service stations throughout Europe. Of these, 1,800 are located in Italy, 400 in Germany, 320 in Switzerland, 160 in the Netherlands and 30 in Spain. As well as the ‘Tamoil’ brand, the Tamoil Group also operates under the ‘HEM’ brand in Germany. In the Netherlands, Tamoil opened in 2010 the first commercial fast-charge station for electric vehicles in Europe.

 OiLibya
OiLibya, is the brand name used by the affiliates owned by Libya Oil Holdings and previously known as Tamoil Africa. The Libyan state-owned company has over 3000 branches in 21 countries across Africa [Libya, Egypt, Senegal, Ivory Coast, Cameroon, Gabon, Kenya, Mali, Burkina Faso, Niger, Chad, Eritrea, Uganda, Nigeria, Mauritius, Ile de Réunion, Morocco, Tunisia, Ethiopia, Sudan and Djibouti]. OiLibya is managed by the Libyan Investment Authority, a sovereign wealth fund that manages Libya’s assets in other countries.

Refineries in Libya

NOC
NOC owns and operates several refining facilities, in addition to many oil and natural gas processing companies. Close to 380,000 bbl/d (60,000 m3/d) of crude is refined by NOCs subsidiaries.

Ra’s Lanuf Refinery
Ras Lanuf Oil and Gas Processing Company (Rasco) is a subsidiary of the state-owned National Oil Corporation of Libya (NOC). Rasco operates the Ras Lanuf Refinery. Capacity 220,000

Zawia Refinery (Zueitina Oil Company)
Capacity 120,000

Brega Refinery (Sirte Oil Company – SOC)
Capacity 10,000

Tobruk Refinery (Agoco)
Capacity 20,000

AgocoSarir Refinery (Agoco)
Capacity 10,000