January 18, 2005

LIBYAN OIL AND GAS OPPORTUNITIES

A unique window of opportunity has emerged for the US oil and gas companies in Libya. It is hard to believe that the politics has changed so much so fast in that country in spite of the fact that the Libyan leadership has not changed. American companies are now welcome in Libya and are invited to become fully involved in developing and reviving the Libyan oil and gas industry, particularly in light of the fact that it represents 95% of their hard currency revenue. 

    Libya, a North African nation of around 5 million people, is a major oil exporter with annual revenues around $13 billions for 2004. They export 1.4 million bbl/day, mostly to Europe. The oil is mostly high quality, low sulfur crude. The government hopes to increase their export level to 2 million bbl/day by 2010.

    The Lockerbie settlement was enough to satisfy the UN and cause their sanctions on the country to be lifted. But by voluntarily giving up their weapons of mass destruction, Libya has surprised the US and the world and opened the door for the lifting of the US sanctions.

    Two types of opportunities for US companies are evolving. These are first, the re-introduction of the US multinational companies that were the foreign partners in the joint venture oil companies like Oasis. These are typically large US oil and gas companies like Exxon, Amerada Hess, Conoco, Oxy, Marathon, etc. Negotiations between the Libyans and these companies are currently ongoing.

    The second type of opportunity deals with large tracts of prospective acreage and several associated discoveries that, at the time they were made, were deemed to be marginal or non-commercial.

Proposal

Utilizing their uniquely qualified pool of experienced consultants, Ammonite Resources can act as representative to interested US companies, solely for the purpose of screening and evaluating available Libyan opportunities. If requested by participating companies, Ammonite can also advise its clients in the negotiations of the commitment work programs, economic terms and in the drafting of the production sharing contract with the Libyans.

Ammonite’s Libyan initiative will be led by Dr. Mohamed Abdel-Rahman. Prior to becoming a consultant in 1999, Dr. Abdel-Raham served as Regional Director, Middle East, Eurasia and N. Africa, Pennzoil Exploration and Production Company (1994-1999), and Exploration Manager, Middle East and N. Africa, Pennzoil Exploration and Production Company 1993-1994. While managing Pennzoil’s Middle East operations, Mo supervised a staff of 47 in offices in Egypt and Qatar, with annual budgets of $50 million. He is fluent in Arabic, and is a US citizen. Ammonite’s UK-based consultant David Bodecott, also has extensive North African experience. Ammonite’s Managing Partner Skip Hobbs studied the giant carbonate reservoirs in the Sirte Basin as part of his Masters Degree, and worked Libya for Amerada Hess in 1977-1980.

Dr. Mohamed Abdel-Rahman