Oil reserves in Libya are the largest in Africa and the ninth largest in the worl

---

Libya's oil industry is run by the state-owned National Oil Corporation (NOC).
The NOC is responsible for implementing the Exploration and Production Sharing Agreements (EPSA) with international oil companies (IOCs). NOC is also responsible for field development and improvements as well as downstream activities. IOCs operating in Libya work in exploration, production, transportation and refining.

IOCs with operations in Libya include Eni, Total, Repsol YPF, StatoilHydro, Occidental, OMV, ConocoPhillips, Hess, Marathon, Shell, BP, ExxonMobil and others.

IOC participation in Libya's oil concessions was initially as high as 49 percent. However, changes to the production sharing agreements under the EPSA – IV licensing round (2005) limited IOC production shares. The Libyan government has since required that IOCs already operating in the country rewrite existing contracts to comply with the new framework. The key elements include a reduction of the companies' share of output (up to half of what it was), a commitment of fresh investment in exchange for an extension of the license period (some up to 15 years).

Overseas Investment

In 2009, the Libyan government invested in Eni, an Italian oil company that has been operating in Libya since 1959 and is Libya's largest foreign oil producer. Through the country's sovereign wealth funds, Libya has been eyeing additional energy investments in Europe and Africa.

Libya also has refinery operations in Europe through its overseas oil retail arm, Tamoil. Through Tamoil, Libya is a direct producer and distributor of refined products in Italy, Germany, Switzerland, and Egypt.
Natural Gas
Libyan natural gas production and exports have increased considerably since the opening of the “Greenstream” pipeline to Europe in late 2004.

Libya's proven natural gas reserves as of January 1, 2011 were estimated at 54.7 trillion cubic feet (Tcf) according to the Oil and Gas Journal. Recent new discoveries and investments in natural gas exploration are expected to raise these estimates in the near-term.

The Libyan government plans to significantly increase the country's natural gas production in order to expand the use of natural gas in the power sector in order to free up more oil for export while maintaining and expanding existing pipeline and LNG exports.

These objectives will be met by further promoting the development of existing and new discoveries, while at the same time reducing the volumes of flared natural gas (estimated at 125 Bcf in 2009).



http://www.eia.doe.gov/countries/cab.cfm?fips=LY

__________________