Libya's goal to join global oil giants http://today.reuters.com/news/articlebusiness.aspx?type=ousiv&storyID=2006-08-24T100303Z_01_L24502302_RTRIDST_0_BUSINESSPRO-ENERGY-LIBYA-DC.XML&from=business
Thu Aug 24, 2006
By Salah Sarrar
TRIPOLI (Reuters) - Libya wants to become a great oil producing country, National Oil Corp chief Shokhri Ghanem told potential foreign investors at the opening of the country's third oil licensing round on Thursday.
Speaking to executives of oil multinationals at a conference hall in Tripoli, Ghanem added he expected "excellent offers" from foreign firms bidding to help the north African OPEC member raise oil and gas output. The desert country of five million, emerging from years of international isolation, is a rare and keenly-contested global hot spot for oil firms seeking to exploit major reserves.
"We want our country to take its place as a great producing country," he said.
"In this round we expect to get excellent offers and expect companies will spend large amounts of money for exploration."
NOC says only 30 percent of Libya, Africa's fourth largest country, has been explored for hydrocarbons. Its estimated reserves of 37 billion barrels put it among the top 10 oil reserve owners.
The round, the third since the lifting of U.S. sanctions in 2004, offers 12 offshore blocks and 29 onshore areas.
The onshore areas include the mature Sirte basin, the semi-mature Ghadames basin and the so-called frontier regions of Murzuq, Kufra and Cyrenaica.
Companies have until Sept 9 to apply for permission to participate. Results are expected on December 20.
Libya wants to attract foreign investment to help it increase its oil output to more than 3.0 million barrels (bpd) per day by 2010/12 from about 1.6 million bpd at present.
Ghanem reiterated that he plans to raise the country's output to 2 million bpd by mid-2007.
Companies have until Sept 9 to apply for permission to participate. Those firms chosen to take part would be informed on September 22.
They will submit formal offers on December 20 in Tripoli, and the results would be announced the same day, with final deals due to be signed in first half of January 2007.
"We deal in transparency and competition -- that's what we emphasize on," Ghanem added.
"There is a tremendous welcome coming from the companies," he told Reuters. "What we want to emphasize is that this round shows the importance of Libya regarding the petroleum industry in the world and the great potential for investment."
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