NOC - Libya

Energy Conference Malta 2014

Libya Gas Overview

By: G H Gadalla, NOC Board Member

Presentation Outline:

• Libyan Gas review

• Shale Oil & Shale Gas

• Distribution of Exported Libyan products 2013

• EU Oil & Gas companies working in Libya• Conclusion

• Gas Utilization & Sales

• New Gas Dev. Projects

Libya Gas Review Current Gas Reserves Status

Libya, with its discovered estimated natural gas reserves of more than 55 TCF, is one of the large gas potential countries.

So far, country’s actual gas reserves have been largely unexploited and unexplored.

it is believed that the remaining prospecting gas resources exceed 100 TCF.

Estimated Gas ReservesLibya is the 4th largest gas potential

country in Africa

Energy Conference 2014, St Julians – Malta, 10 – 11 July 2014

National Oil Corporation, Libya

Libyan discovered proven gas reserves (*)

18.4 TCF, 34%

36.2 TCF, 66%

(*) Above reserves do not include latest discovered offshore and onshore gas reserves estimated between 5-10 TCF.

Total gas reserves : 54.6 TCF

Libyan Gas Review

Large Area (˜50%) of the country remains unexplored.

Sirte Basin

Ghadames Basin

Murzuq Basin

Kufra Basin

Cyrenaica Platform

Pelagian Basin

Offshore Sirte Basin

Energy Conference 2014, St Julians – Malta, 10 – 11 July 2014

National Oil Corporation, Libya

Prolific basins and gas locations The most prolific discovered gas reserves are located in Sirt, Ghadames, Murzuq Basins, North

Western offshore blocks and North Sirt basin offshore.

0 200 400 km

°10 °14 °18 °22 °26

°32

°28

°24

°20

SirtSirt

KufraKufra

Cyrenaica / Cyrenaica / BotnanBotnan

OffshoreOffshore

MurzuqMurzuq

GhadamesGhadames

Tripoli

Benghazi

Sirt

Sebha

Kufra

Note :Boundaries borders are not formal

Libyan Gas Review

Discovered (not-developed) Western Onshore Gas Fields (*). So far only Wafa Gas Field has been developed

Offshore Gas FieldsNorth West offshore fields, in Concessions , 35, 41 & 137. Estimated reserves ˜15 TCF

New offshore discovery (2009), Arus El Bahr, by HESS in Gulf of Sirte, Area 54. Estimated reserves 5.0 TCF

North-West Offshore Gas Fields Gas Reserves: 14.9TCF

Bahr Esselam is the only developed gas field: Current production capacity is 950 MMSCF/D.

Feasibility studies on other offshore gas field developments is in progress. Expected additional gas rate is 600 MMSCF/D in 2018.

National Energy Strategy Until recently, crude oil was the major target of hydrocarbon

resource for exploration and exploitation;

Due to increasing demand for gas by domestic and international consumers, NOC has adapted a National Energy Strategy to;

Explore new resources, Develop discovered gas fields, Utilize associated gas from oil fields (zero gas flaring) Expand and upgrade gas production infrastructure

and capacity of the country and expand domestic gas utilization (i.e. power, distillation, industries, petrochemicals and city gas)

Current Developed Free Gas reservoirsCurrent gas production is realized from

Free (Non Associated) Gas Reservoirs, and Associated gas from oil reservoirs

Developed Free Gas Reservoirs:

Millitah, Wafa Field, 620 MMCF/D

Millitah , Bahr Essalam Field950 MMCF/D

First Free Gas Producer was in 1978 by Sirte Oil Company

1978, Hatiba, 200 MMCF/D

1989, Assumood, 80 MMCF/D1990,

Sahl, 70 MMCF/D2005

Attahadi, 350 MMCF/D

Energy Conference 2014, St Julians – Malta, 10 – 11 July 2014

National Oil Corporation, Libya

Free Gas (Non Associated Gas Producers)- Mellitah & Sirte Oil are the major free gas producers

Free Gas Production rate by company, 2009

Gas

Pro

d R

ate,

MM

CSF

/D

Mellitah Sirte Oil

Sirte Oil: 456 MMCF/DMellitah: 1193 MMCF/D

Libyan Gas Review

Gas Utilization & SalesOil op-

eration; 21%

Electric-ity & In-dustries,

38%

Italy; 29%

Flaring; 12%

Current gas pipelines and Export line to Europe

Benghazi

Marsa el Brega

Misratah

Tripoli

MabrukBahi

DahraEd Dib

Zella

AswadSabah

Kotla/Ora

Dor Marada/Lehib

Amal / As-SarahAugila/Nafoora

Katib/Rimal

Bu-Attifel

Sarir N.

SarirMagid/Messla

Gialo

El Meheiriga

HateibaAin Jerbi/Meghil/Sorra

RalehNaserJebel

Waha

Defa

Almas

Farad/Hofra

Bualwan

Raguba

Zaggut

Balat/SamahKhalifa Bel Hedan

Bir Tlacsin

Oued Chebbi

Hamada el Hamra

Emgayet

Oued Tahara

Gozeil

Atshan

Wafa

Elephant

BouriD1

G1

E1

To Italy

Khoms

Sirt

Sidra Ras Lanuf

Sebha

Sharara

Tobruk

Zueitina

Tunisia

Alg

eri a

Eg yp t

Oil Fields

Gas or Gas/Condensate FieldsOil Pipeline

Oil Pipeline Planned/ProposedGas PipelineGas Pipeline Planned/Proposed

Gas Processing Plant

Oil RefineryLNG Export Plant

Tanker Terminal

LEGENDLEGEND

Intisar

Mellita

Zuara

Oil & Gas Fields&

Transportation System

OOilil & G& Gas Fieldsas Fields&&

Transportation SystemTransportation System

Zawia

Oil:Oil:6,000 Km of pipelines6,000 Km of pipelines7 Export Terminals7 Export Terminals28 28 MMbblsMMbbls: Storage Capacity: Storage Capacity

Gas:Gas:3,200 Km of pipelines3,200 Km of pipelines19 Compression stations19 Compression stations1 LNG plant + 5 NGL1 LNG plant + 5 NGL

Energy Conference 2014, St Julians – Malta, 10 – 11 July 2014

National Oil Corporation, Libya

West Libyan Gas Pipeline Project

Jointly with ENI Company;

West Libyan Gas Pipeline Project was completed in 2004 and first gas export thru the 32” pipe line, along the Mediterranean Sea to Europe, was commenced in the same year.

The gas export capacity of this pipeline has been supplied from onshore Wafa Field and offshore Bahr Esselam Fields at around 1050 million SCF/D. Development of the other discovered offshore blocks in the Concession 41 is under planning stage to further back up this pipeline.

Libyan Gas Review

Main Coastal Gas Pipeline and Gas Utilization, MMCF/D

Free Gas (Non Assoc.) & Associated Gas production forecast (2012-2021)

2012 2013 2014 2015 2016 2017 2018 2019 2020 20210500

10001500200025003000350040004500

Associated gas free gas

After Petrenel

547 TCF

Estimated Unrisked Shale GIIP Resources (Year 2010)

Shale Oil & Shale Gas In Place (Risked)

Ghadames Sirt Murzuq0.0

50.0100.0150.0200.0250.0300.0350.0400.0450.0500.0

130

457

27

Bill

ion

Bar

rels

TCF

Ghadames Sirt Murzuq0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

276

648

19

After EIA/ARI JUNE 2013

Total = 614 BBO

Total = 943 TCF

Gas utilization Until 2004, Sirte Oil Company was only gas producer

from Sirte Basin gas fields, Attahadi, Hatiba, Sahl and Assumud. Production was utilized for petro-chemical products and LNG Plant in Marsa El Brega refinery and for local industry consumers

Now Libya wants to extend use of natural gas for; country’s power generation manufacturing, supply gas for the international market.

Feasibilities of new gas field development and gas utilization projects are underway

New Gas Field Development Projects

Gas & Condensate Fields In NC-5, 7 & 8 (Under study: potential up to 400 MMSCFD)

Fariegh Field Potential up to 180 MMSCFD, (under commissioning).

NC-98 & NORTH GIALO 6J (gas will be recycled to reservoir to maximize recovery;

condensate production up 100,000 bbls/day from each field)

Offshore Fields (NC-41) (Discovered structures have potential to produce 600

MMSCFD)

Projects to Enhance Gas Utilization

Upgrade gas shipping capacity of coastal line Al Jurf gas utilization / re-injection Hatieba gas plant upgrade Jebel gas lift upgrade Nasser gas lift upgrade Bouri gas utilization (off shore) Sarir Messla gas utilization Nafoora gas utilization Amal & Ghani gas utilization

Downstream features of master plan projects

RefiningAzawia Refinery expansion and development Project: New Capacity 220 - 300 kbbl/d Units: CDU, RFCC, Alkylation, Treatment, etcSouth Refinery: New small (30 kbbl/d) hydro skimming refinery Toboruk Refinery: New grass root refinery, processing capacity of 220- 300 kbbl/d

Mellita Complex Project :

Feed : Naphtha derived from Azawia refinery and condensate from Mellita gas plant ethane from deep extraction unit

Units : Ethane extraction, Reforming, Steam cracking, Aromatic plant, many other units,

Main products: Several grads of polyethylene, other ethylene derivatives, propylene and its derivatives, benzene and p- zylene and their derivates, butadiene, etc

Petrochemicals

Petrochemicals

West Benghazi Petrochemical Complex:

Feed: Naphtha derived from Toboruk refinery and condensate from Brega and Zwitena gas plants, ethane from extraction unit

Units : Ethane deep extraction, Reforming, Steam cracking, Aromatic plant, many other units

Main Products: integrated with Mellita ComplexRaslanuf petrochemical plant development:

ethane extraction unit, steam cracker new, ethylene – propylene

co- polymerization unit , other available products will be integrated

with west Benghazi petrochemical complex

Downstream features of master plan projects

Exported Products Quantity

Crud oil MB 250

Oil ProductsKTM 1,286

Neutral Gas MPTU 171

LNG + Condensate KTM 1,881

Petrochemicals KTM 409

TOTAL EXPORTED PRODUCTS 2013

Distribution of Exported Libyan Crud oil 2013

Italy33%

France19%Holland

6%Greece5%

Portugal0%

Ireland8%

Germany12%

Holland1%

Turkey2%

Spain4%

Others10%

Distribution of Exported Libyan Oil products and petrochemicals 2013

Oil Products Petrochemicals

Italy27%

Spain4%

Germany6%

Netherland31%

Others32%

Turkey10%

Italy13%

Spain7%

Netherland24%

Others46%

EU Oil & Gas companies working in Libya

Conclusions Libya is one of the large gas potential countries with its discovered gas

reserves estimated at 55 TCF with an estimated prospecting remaining resources of about 100 TCF

The large offshore gas discovery by HESS in 2009 in block 54 offshore Sirte Basin has opened a new exploration potential in this area.

Construction of West Libyan Gas Pipe in 2004 from Millitah to Italy has opened an outlet for Libyan gas to the European Markets. Daily gas export rate to Italy is around 800-900 million SCF/day.

As per foreseen substantial gas demand from local and international markets, NOC has set steps towards utilization of the entire produced associated gas.

As a part of development the country’s gas infrastructures, the coastal pipeline system, feeding the various industries in the country, has been extended to the west to meet the local demands and integrate with the international export outlets.

Additionally, NOC plans to build a complete gas pipeline network along the country’s gas resources to utilize all associated (Zero flaring) and non associated gas.

Major gas development and gas utilization projects are underway in Sirte and Ghademes Basins.

EU must play an important role for setback the stability of Libya.

Libya one of the best Energy source for EU because Libya considered a very close and save source of energy.

The Libyan Conventional and unconventional reserves is able to support the EU energy requirements for long period of time.

The new Libya is open for the new investment ides to exploiting the deferent resource of energy ( oil & gas, Wind, Sun solar….. ).

Libya has the youth have the ability to learn, work and participate in the development of the country.

Thank You For

Your Attention