ENERGY - the key to Libya's economic progress

Libya recognises that to achieve its ambitious infrastructure and economic development plans, its energy sector has a crucial role to play. Oil and gas production is not only important as a foreign currency earner for Libya but is also vital for the country’s electrical power generation and feedstock for its downstream refining and petrochemical industries. The energy sector in general is set to see very significant investment aimed at increasing output to keep up with growing demand.

Click here to read the NOC letter of official endorsement for Energy Libya

Oil

The oil industry is the key to the overall economy of Libya. With its reserves of 39 billion barrels of proven crude oil (OPEC figures) Libya has the largest reserve base in Africa (42%) and 3% of world reserves. The sale of oil, natural gas and refined products generates export earnings of US$12 billion per year accounting for 95% of Libya’s foreign currency earnings and 75% of Government revenues.

Libya aims to boost oil production from its current 1.6 million b/d to 2 million b/d by 2008/10 and 3million b/d by 2015. It is estimated that this will require investment of around US$30 billion. Much of this will be spent on exploration, new field development and the maintenance of existing fields.

Gas

Libya has vast gas reserves and is looking to increase significantly its exports, particularly to Europe. There is also a high priority to expand natural gas production for domestic consumption to free more crude oil for export. Agreements have been signed to upgrade and expand the capacity of country’s LNG plant from 0.7 million tons per annum (mtpa) to 3.2 mtpa by the year 2010.

Pipelines

Libya's geographic size means that it already has a network of more than 9500 km of pipelines carrying crude oil, natural gas and petroleum product which offer contractors significant opportunities in the supply of maintenance services, corrosion prevention, pigging and instrumentation.

As field development progresses there are plans on the drawing board for at least 650km of new pipeline projects which will offer opportunities for engineering, procurement and construction contractors.

Refining and Petrochemicals

Libya is working on the upgrade and expansion of all its refineries, which serve both the domestic and export markets, and NOC estimates that a total investment of around US$3.5 billion will be needed over the next 5-8 years. NOC has also identified US$800 million of investment needed for the development of petrochemical plant to produce polypropylene, butadiene, benzene and high- and low-density polyethylene.

Training

More than 80% of Libya's budget for education and training is spent in the petroleum sector. Major opportunities exist for providers of training services and facilities as Libya develops its own own human resources potential.