From Libyaonline.com
http://www.libyaonline.com/business/pages.phpLibya’s economy is heavily reliant on oil exports.
Economic growth in Libya is dependent on the hydrocarbon industry.
Since the United Nations and the United States lifted sanctions over Libya in 2003 and 2004, respectively, oil majors have stepped up exploration efforts for oil and natural gas in the country.
Libya, a member of the Organization of Petroleum Exporting Countries (OPEC), holds the largest proven oil reserves in Africa .
Libya remains "highly unexplored" … only around 25 percent of Libya is covered by exploration agreements with oil companies.
The under-exploration of Libya reflects the impact of former sanctions and also stringent fiscal terms imposed by Libya on foreign oil companies.
Future foreign investment into the oil sector is likely
NOC’s [Libyan state owned company] production goals depend on its ability to finance its share of development costs.
Libya is considered a highly attractive oil province due to its low cost of oil recovery (as low as $1 per barrel at some fields), the high quality of its oil, and its proximity to European markets.
The majority of Libyan oil exports are sold to European countries
Major companies with interests in Libya are strongly associated with Britain, France, Italy, USA, Norway, Spain, Germany, Austria, South Korean conglomerates, China etc.
United States-based Colony Capital reached an agreement to take over 65 percent of Tamoil, while the Libyan government will retain 35 percent. Libya will continue to control Tamoil Africa
2003 - the UN Security Council officially lifted its sanctions over Libya
2004 - United States … White House issued a press release stating that: “U.S. companies will be able to buy or invest in Libyan oil and products.
2004 - President Bush signed Executive Order … lifting U.S. sanctions against Libya and opening U.S. access tu Libya’s oil reserves
Libyan exploration licenses are determined largely based on how high a share of production a company is willing to offer state-owned NOC.
Companies offering NOC the greatest share of profits are likely to win.
Oilfield developers initially bear 100 percent of costs (exploration, appraisal, training) for a minimum of 5 years, while NOC retains exclusive ownership.
This is without looking at gas reserves which is a whole new ball game. Egypt has a joint venture agreement to pipe gas from Egypt to Europe [Italy] via Libya's pipeline. The current & future investments in LPG/LNG are strategically important to major companies as well.
Royal Dutch Shell, a multinational oil company ("oil major") of Anglo Dutch origins, is amongst the largest oil companies in the world.
2005 - Shell agreed to a finalise a deal with NOC to develop Libyan oil and gas resources
I will leave this report in the hands of those who want to judge for themselves what is occurring in Nth Africa & the Mid-East. More info will be laid to bare that clearly resembles the takeover of more oil & gas reserves by Anglo-US-NATO based strategists.
My opinion is that, this has been a strategic plan in the making as some major players have refused to re-sign existing contracts with NOC over preceding months. NOC will be progressively dissolved or restructured and a ''puppet government'' will takeover Libya. China explorers and downstream processors will be somewhat locked out and European dependence on Russia to provide future energy requirements will be somewhat eased. Italy needs to bolster the Meditteranean presence into Europe.
Putin is one smart cookie because he reportedly severed ties with the ''banksters'' when he was the President and got Russia out of debt through energy sales to Europe and China.
It is also reported that Sarkozy needed to bolster his flailing ratings in the lead-up to re-election & this move will sringboard western domination across North Africa. Italy is in the red; Germany wants what the other countries won't sign under current contracts with NOC, EU is under duress of Sovereign Debt Crisis etc. There are many valid reasons why this play is of benefit to Anglo-US-EU interests.
Look at it objectively;
Germany & France want to both play their own games as far as the EU goes
Sarkozy naturally sides in with the power-play for vested interests.
Italy can gain perhaps the geatest economic & strategic benefit from Libyan energy
Germany can outbid most players in Europe to win stakes under current conditions -- hence the passive reaction to change
China can outbid them all if rule changes are not made
Anglo-US imperialists take what they want and don't have to pay for it so it's all hands on deck to liquidate & assimilate Libyan assets.
Everyone was taken back that a ''no-fly'' zone meant bowling them over but it is a very good play really to restore some balance back in the system.
''Oil is wealth & wealth is Power'' [quote Kaibo]
I rest my case your honour...however, there will be more to come.
Welcome back Hills.
It is nice to get someone who is concerned enough to joust about what we see as another potential nail in the coffin. Humanism will never solve the international problems when corrupt powers set the stage to feather their own nests.
He who is greatest in the kingdom of heaven must humble himself as [this] a little child. In history, there are no great men, just humble men who were greatly used by God. It is such a pity a man like Gaddafi did not bow humbly before his greatness was revealed as little more than folly-- he will retire with no glory but the glory of his loyal subjects.
Solomon said, ''...all is vanity...''
I say, even with all the greatness of human intelligence & endeavour, we still know very little because the truth we claim to possess is held in the vanity of our minds!
Remember Schultz in Hogans Heroes ... he said time and again ...''I know nothing!"
What a wise man he was!
Selah!
Hefei Expat - China
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