In addition to producing the flagship fortnightly African Energy, AE’s team of experienced analysts also produce briefings and reports on a range of topics and issues that affect the region. Our expertise can be tapped by anyone and delivered in a range of formats. For more information contact Nick Carn. nick@africa-energy.com
New 2010 report & seminar
Libya’s Energy Future: Industry and Political risk outlook was launched at a Chatham House seminar in London on 20 July.
Based on African Energy’s unparalleled track record in following Libya’s energy story and careful, originally sourced reporting from Libya and global markets, this updated and enlarged special report analyses the major issues and the financial and political trends influencing development of Libya's energy industries. Read more
A detailed guide to electrification in Africa
A 400-page study published in Paris by Karthala, L’Electricité au Coeur des Défis Africains (available in French only) includes an overview of the continental electricity supply industry and examples of generation, transmission and distribution projects. A chapter on decentralised rural electrification is followed by another on the establishment of decentralised services companies.
The book draws on articles and materials from a number of experts and sources, including African Energy.
Order a copy now, priced €36 / £30 plus postage and packing. Email: nick@africa-energy.com
AfricaHardball is an executive dialogue that brings together policy-makers, industry leaders and analysts to discuss the key political issues affecting the African energy industry in frank and open terms.
The last AfricaHardball roundtable was held on 29 June, prior to the start of EnergyNet Ltd’s annual Africa Energy Forum (AEF), in Basel. Read more
On the page below you will find a selection of articles from the African Energy archive. All items preceded by a padlock symbol require a subscription.
Maghreb gas search: Libya accelerates, Algeria hesitates
Libya’s new gas round showed just how keen IOCs are to explore despite the Jamahiriya’s opaque and sometimes difficult business environment. Algeria has a more established gas industry but its leaders seem more cautious still about encouraging major new E&P initiatives. Jon Marks in Algiers and John Hamilton in Tripoli ask whether gas-hungry Europe will secure reserves from major Maghrebi producers as quickly as EU leaders would like. Issue 128, 14 December 2007.more
New contract for Hyundai
South Korea’s Hyundai Engineering and Construction said on 26 November that it was part of a consortium which had won a $540m order from the General People’s Committee of Electricity, Water and Gas for the construction of a combined cycle gas turbine power plant in Sarir, south of Benghazi. Issue 128, 14 December 2007.more
Petro-Canada signs new deals with NOC
Ahead of the new bid round (see Analysis, above), Petro-Canada became the latest company to update its contracts with Tripoli, signing heads of agreement with National Oil Corporation (NOC) to convert its existing participation agreements and old exploration production-sharing agreements (EPSA) to six new EPSA-4 agreements. Issue 128, 14 December 2007.more
New find for Verenex
Verenex Energy has announced a fourth oil discovery in Area 47 in the Ghadames Basin. The F1-47/02 new field wildcat exploration well was drilled to a depth of 10,300ftr and flowed crude oil at a maximum flow rate of 7,215 b/d, plus 13.7m ft3/d of gas. Issue 128, 14 December 2007.more
ExxonMobil’s new blocks raise the stakes in Libya
The new territory awarded to ExxonMobil by NOC places the US company at the forefront of offshore exploration in Libya at a strategic moment, writes John Hamilton. Issue 127, 30 November 2007.more
Libyan procurement changes tax oil and gas suppliers
The closure in July of Libya’s two overseas procurement companies has thrown many suppliers to the oil and gas sector into a state of uncertainty about the validity of their contracts and the extra tax they may have to pay on them. Issue 127, 30 November 2007.more
Libya: big opportunities, tough market – then there’s the politics
Concern that BP’s mega gas exploration and development deal may be delayed by the apparently never ending Lockerbie affair adds to the view that success in the Libyan hydrocarbons sector is hard to achieve, even for the biggest, best-supported operations in the business, writes John Hamilton. Issue 126, 16 November 2007. more
US interests establish a physical presence in Tripoli
The United States has been much slower than the United Kingdom in establishing close relations with Tripoli in the years since Colonel Muammar Qadhafi contributed to the ‘global war on terror’ by renouncing weapons of mass destruction. Issue 126, 16 November 2007. more
Eni, NOC sign deal on future development in Libya
Following BP’s deal with Libya signed in May, major player in the Jamahiriya Eni has secured a long-term strategic deal with NOC, extending its oil and gas contracts by 25 years under tighter commercial terms. Issue 124, 19 October 2007.more
StatoilHydro in payments probe
StatoilHydro, the freshly merged Norwegian oil giant, has called in an external investigator to examine allegations of improper payments of over more than $7m paid to local consultants and to Spain’s Repsol in 2000 and 2001. A whistle-blower at Hydro raised the alarm that these Libyan payments may have breached ethical guidelines on the eve of the merger of its oil and gas business with Statoil. Issue 123, 5 October 2007.more
Value chain full of opportunities in Libyan round
The shortlist of companies approved by National Oil Corporation (NOC) to participate in its gas licensing round indicates the likely shape and scope of the sector’s development. Officially the winning tenders will be selected in mid-December, and officials say the process will be as efficient and transparent as in all three previous EPSA-4 bidding rounds. Issue 122, 21 September 2007. more
Production planned in Area 47
After a series of successful oil discoveries in the past few months, Canada’s Verenex Energy and Indonesia’s Medco Energi Internasional plan to build a large oil production facility in Area 47. Medco president Hilmi Panigoro told reporters in Jakarta that he expected work to start on construction of the $500m facility in mid-2008. Issues 120 and 121, 7 September 2007.more
Naftogaz’s past failures mean delays for Ukrainians today
Naftogaz Ukrainy is experiencing delays in its Libyan oil exploration project because of a past failure to meet contractual obligations. Issues 120 and 121, 7 September 2007.more
Libyan gas round sees strong interest despite heavy competition, EOR may finally follow
The strong turnout at roadshows for Libya’s gas licensing round suggests that international companies’ enthusiasm for acreage shows no sign of abating despite the heavy competition Issues 120 and 121, 7 September 2007.more
Two new thermal plants planned
The General Peoples’ Committee (GPC, government) has agreed to the construction of two 1,400MW thermal power stations “to meet the demands of the steady increase in electric power and securing the future needs of the Great Jamahariya [State of the Masses].” Issue 119, 27 July 2007.more
Verenex seeks finance for Area 47 work
Calgary-based Verenex Energy will raise up to C$115m ($110m) to finance its seismic and drilling commitments in Area 47 of the Ghadames Basin for this year and into 2008. Issue 119, 27 July 2007.more
NOC launches gas round
National Oil Corporation has invited international oil companies to bid for exploration permits for 41 blocks divided into five offshore and seven onshore contracts. Issue 118, 13 July 2007.more
BP lines up with Libyan state fund for ‘mega-deal’
One of the less explored questions of BP’s recent mega-deal is why it created a consortium with the Libyan Investment Corporation prior to its partnership with National Oil Corporation, write John Hamilton and Jon Marks. Issue 116, 15 June 2007.more
Tamoil bought by US investor
The acquisition of Libyan-owned Tamoil by Los Angeles-based private equity group Colony Capital values the refining and service station group at $5.4bn. Colony has bought 65% of Oilinvest, Tamoil’s holding company for $3.5bn. Issue 116, 15 June 2007.more
Blair leverages post-Browne BP into return to Libya with big gas deal
Tony Blair’s valedictory visit to Africa provided another photo opportunity for Muammar Qadhafi – and was apparently sufficient to persuade the Libyan Leader finally to give his long-waited approval for BP to launch the Jamahiriya’s next big integrated LNG scheme. Issue 115, 1 June 2007.more
EPSA winners may struggle to meet terms
The tough competition for exploration licences in the two most recent EPSA rounds may have caused some successful companies to overextend themselves, according to the senior executive of an international oil company that successfully obtained a licence in the first round. Issue 114, 18 May 2007.more
Dow partners NOC in Ras Lanuf petrochemicals JV
National Oil Corporation (NOC) and US giant Dow Chemical Company have announced plans for a joint venture to operate and expand the Ras Lanuf petrochemical complex on the Mediterranean coast. Issue 113, 4 May 2007.more
Costs may be too high for LNG
Libya’s decision to focus on potential gas blocks in its upcoming fourth EPSA IV licensing round may have come too late to enable it to establish a firm foothold in this sector. Issue 112, 20 April 2007.more
Uncertain future for Tamoil
National Oil Corporation chief Shukri Ghanem has said that the authorities are still debating whether to proceed with an international tender to sell state refining and marketing concern Tamoil’s European operations. Issue 111, 23 March 2007.more
Project listings: North Africa natural gas update: Libya-Morocco
The development by Eni of the Greenstream pipeline to Italy has shown that Libya can develop new natural gas export facilities to compete with its regional rivals Algeria and Egypt. Shell, BP, BG and other majors are waiting to see if they can secure similar agreements, which might lead to a new LNG plant being built on the Jamahiriya’s Mediterranean coast. Issue 111, 23 March 2007.more
BP says talks continue with NOC on long-awaited integrated LNG scheme
BP has countered press reports that its long-running negotiations with National Oil Corporation (NOC) for a major gas project have tripped up over disagreement on the size of the stake to be offered to the UK major in a proposed integrated deal, which was the subject of an memorandum of understanding signed 18 months ago. Issue 110, 8 March 2007.more
ExxonMobil signs contract for offshore acreage
ExxonMobil has signed an exploration and production-sharing (EPSA) agreement with National Oil Corporation (NOC), following the approval last month of its bid for offshore contract Area 20 (AE 106/12). Issue 109, 23 February 2007.more
Mixed signals from Libyan reshuffle
The appointment of a new utilities minister drawn from the regime’s conservative wing suggests that Libya will remain among the slower power sector reformers, but the overall direction of policy remains towards change, provided Colonel Qadhafi doesn’t order another about-turn, writes Jon Marks, recently in Tripoli. Issue 109, 23 February 2007.more
Tunisia seals energy partnership with Libya
Libya and Tunisia are extending their gas co-operation to plans for an oil pipeline and refinery with potential gains for both partners, writes Selwa Calderbank. Issue 107, 26 January 2007. more
Shell discusses greenfield LNG plant
Royal Dutch Shell executives have been talking about a greenfield LNG plant with National Oil Corporation (NOC) – but at least three international companies remain in the running, including BG and Woodside. Issue 107, 26 January 2007. more
Argentina to upgrade Libyan reactor
Former pariah state Libya, whose reinsertion into the global community came with Colonel Muammar Qadhafi’s renunciation of a weapons of mass destruction programme, has joined the trend towards promoting civil nuclear projects. Issue 106, 12 January 2007.more
Third round shows Libyan business still tending towards the irrational and exuberant
Libya is pushing for a major expansion of energy sector investment, emphasising natural gas and downstream refining plus the nuclear and even renewable energy sectors, but the real focus will remain the booming upstream oil E&P industry, writes Selwa Calderbank, recently in Tripoli, with Jon Marks. Issue 106, 12 January 2007.more
Egypt’s fast-track generation programme, with a focus on exploiting substantial gas reserves, is supported by a significant transmission upgrade, providing a steady flow of major contracts. Libya is now also emerging as an important potential market – underlined by Hyundai’s new contracts – as state company Gecol starts to make up for lost time after years of sanctions and mismanagement. Issue 105, December 2006.more
Libya builds regional links to help meet demand
General Electricity Company of Libya reports progress in its $1.2bn strategy to improve the domestic grid, supply remote communities and consolidate links with regional networks – the so-called Mediterranean Loop (Medring). The Libyan utility says generation projects with total 3,150MW capacity are scheduled for completion in 2007. Issue 104, November 2006. more
Energoinvest is back with a trans-Med powerline order
A visit to Tripoli in late July by Bosnia-Herzegovina Presidency Chairman Sulejman Tihic yielded significant contracts for a number of Bosnian companies. Most notable is Sarajevo-based Energoinvest, which secured a 400kV trans-Mediterranean transmission contract, marking its return to significant international business after a long hiatus caused by the Yugoslav civil war. Issue 102, September 2006.more
Third Libyan bidding round enters frontier territory
Libya has finally unveiled its long-awaited third EPSA-4 bid round, but oil companies were disappointed by the acreage on offer, writes Selwa Calderbank. Issue 102, September 2006.more
Ghanem moves NOC operations back to home base
Former head of government Shukri Ghanem has made his first significant public move since taking over at National Oil Corporation, ordering the operations of three major overseas-based NOC affiliates to be transferred back to Libya. Issue 102, September 2006.more
Punj Lloyd pipeline contract
India’s Punj Lloyd has won a $290m order from Sirte Oil Company for the engineering, procurement and construction of two pipeline projects. Issue 102, September 2006.more
Budget approved for JGC pipeline
The intergovernmental Joint Gas Company has approved a $250m budget to build a pipeline from Melitah in Libya to Gabes in Tunisia, with the main construction tender due by year-end (AE 100/22). Issue 102, September 2006.more
Woodside drilling plans
Woodside Petroleum plans to drill a total of 17 exploration wells in Libyan acreage held with partners over the next 18 months, 13 of them onshore and four offshore. Issue 101, August 2006.more
Pointer – Block NC101 discovery
Total has announced an oil discovery in the NC191 block, south-western Libya, around 800km south of Tripoli. Issue 101, August 2006.more
Penspen wins pipeline contract
The UK’s Penspen has won an engineering consultancy services contract for a pipeline to transport Libyan gas to the Tunisian market. Issue 100, July 2006.more
Pointer – RWE starts drilling
Germany’s RWE Dea has begun drilling exploration well A1-NC 193 on Block NC 193 in the Sirte basin, the first of a ten-well minimum licence commitment. Issue 99, June 2006.more
Azzawiya refinery tenders
Tenders have been issued for the main 120,000 b/d Azzawiya refinery expansion project package, which will increase refining capacity by 24%, with a change in contract terms and an expansion in the scope of works Issue 98, May 2006.more
Shukri moves to NOC
In a turbulent month in Libyan politics, liberalising general secretary (prime minister) Shukri Ghanem lost his job as head of government and was moved – as African Energy predicted was possible (AE 96/6) – to head National Oil Corporation (NOC). Issue 97, April 2006. more
Libya struggles to find the right path amid power struggles at the top
A major rethink on the most effective methods of exploiting Libya’s hydrocarbons is under way, throwing the EPSA model for exploration contracts into doubt. The proposed changes come amid intense rivalry at the top, with the Tripoli rumour mill suggesting that further changes at NOC will follow, writes Selwa Calderbank with Jon Marks. Issue 96, March 2006.more
Libya shows little interest in resolving oil dispute with Malta
Malta is holding talks with Libya to resolve a long-standing dispute over the delineation of an oil shelf that lies between the two countries, but a final resolution still looks out of reach. A senior European diplomatic source told African Energy that the Jamahiriya (State of the Masses) had little interest in allowing Malta to explore for oil in the disputed waters. Issue 96, March 2006.more
Gazprom looks for North African opportunities
Russia’s Gazprom has announced that it is in talks with North African state energy companies to negotiate major partnership agreements. Issue 96, March 2006.more
At last, a real energy sector strategy for Qadhafi’s revived hydrocarbons oasis
It was a highly successful year for the Libyan energy industry, with the return of US majors, and two hugely competitive exploration and production-sharing (EPSA) licensing rounds attracting significant levels of international investment. Selwa Calderbank and Jon Marks believe the Jamahiriya can maintain the pace in 2006 and beyond – providing NOC can prove Libya holds the level of oil and gas reserves that Tripoli claims and IOCs so crave. Issue 94, January 2006.more
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