LIBYA OIL & GAS MARKET OVERVIEW

Bassam Drebika - United Energy ServicesTripoli, Libya

Agenda

• Libya in Figures• Market Overview• Oilfields Map• Offshore Activity • Current Business Opportunities• Establishing a Business in Libya• Questions & Answers

Libya in Figures

Area : 1,759,540 km2 Population : 6,310,434

GDP : 88.86 billion USD

GDP : growth 6.3%

GDP per capita (PPP) : 14,400 USD

Unemployment : 20.7%

Population below poverty line : 7.4%

Inflation : 5.8%

Exports : 66.13 billion USD

Imports : 20.64 billion USDExchange rate : Dinar/USD= 0.77

Source: The World Fact Book – 2008 Data

Market Overview (1)

• UN Sanctions against Libya were lifted in 2003 followed by full constrains removal by mid 2006, helping Libya attract greater foreign direct investment.

• Libya, in the past five years, have made progress on economic reforms as part of a broader campaign to reintegrate the country into the international fold.

• Libyan economy depends primarily upon revenues from the oil sector.

which contribute about 60% of public sector wages. • Libya was ranked first place, in BMI’s updated Upstream Business

Environment rating, with a comfortable margin of three points: proven oil reservesregion-topping oil reserves-to-production ratio (RPR) good licensing terms

Market Overview (2)

• State owned, National Oil Corporation (NOC), accounts for about half of the country’s oil and gas production and 100% of the country's refining capacity.

• Libyan oil & gas licensing rounds continue to draw high international interest; NOC set a goal of nearly doubling oil production to 3 million bbl/day by 2012.

• Libya still faces a long road ahead in liberalizing the socialist-oriented economy, but initial steps - including applying for WTO membership, reducing some subsidies, and announcing plans for privatization - are laying the groundwork for a transition to a more market-based economy.

Libya Oilfield Map & Licenses

Offshore Activity

Exploration phase:CNPC         area 17/4Amerada  area 54 - 4,000 km of 2D marine seismic awarded to SCANJapex            area 40/3&4 - conducted 2D & 3D seismic surveys BP   area 37, 38 & 39 - world’s largest 3D seismic acquisition and onboard 

processing  contracts awarded to Wavefield inseis

Drilling phase:Nippon  area 2/1&2 - wildcat well is being drilledPetrobras        area 18 – wildcat well is being drilled by drillship Songa expected TD in Sep-09Petramina     area 17/3 - wildcat well is being drilledExxonMobil         area 20, 21 & 44 - completed 2D & 3D seismic - wildcat well is being drilled.Woodside  area 35, 36, 52 and 53  - drilled 4 dry wellsRepsol                    NC 129 & NC 173 - first offshore hydrocarbons discovery

Production phase:Eni  Bouri field on Block NC 41 - production since 1976  at 70,000 b/dTotal  Al Jurf field on Block C 137 - developed in 2003,  producing  40,000 b/d.  

• Using an Agent or Distributor• Establishing an Office

Representative OfficeBranch Office

• Entering as a Joint Venture/Joint Stock Company• Entering Libya Under the Terms of Law No. 5 of

1997 (Encouragement of Foreign Investment)

Establishing a Business in Libya

For any questions or comments in regards to this presentation, please contact:

Bassam DrebikaManaging Director

United Energy Services+218 21 721 3654+218 21 362 1485+218 91 381 5467Email: info@ues-corp.com

Thank You