Libya discovers three new oil fields

Libya's National Oil Corporation (NOC) has announced the discovery of three new oil fields. The first discovery was made by Turkish Petroleum (TP) working on experimental wells B1-17/3, on Block 147, in the Morzuk Basin in southern Libya. Preliminary tests showed that the first well has the capacity to produce around 265 b/d. Further tests are expected to be carried out in due course.

The other two wells, said to be rich in both oil and gas, were discovered by a consortium of several companies affiliated with the NOC and the Libyan Investment Institution. Libya has estimated oil reserves of 60 billion barrels, and gas reserves in the region of 1,500 billion cubic metres.

In other developments, the head of Libya's OPEC delegation has said that Libya will not increase production if speculation drives oil prices to $100 per barrel, but will look to fundamentals to determine whether the group needs to hike output.

Reiterating his earlier point about output levels head of NOC Dr Shukri Ghanem said, "Once we feel that world demand is increasing and there is not enough supply in the markets in that case we will increase the production."

"There is a lot of oil in the market; there is no shortage, so putting more oil [in the market] would not be prudent," he added.

Source: Africa en ligne, Reuters

For more news and expert analysis about Libya, please see Libya Focus and Libya Politics & Security.

Libya set to account for 7.74 per cent of African oil demand by 2014

The latest Libya Oil & Gas Report, compiled by BMI, forecasts that the country will account for 7.74 per cent of African oil demand by 2014, and will be responsible for 15.82 per cent of overall supply. It is expected that African regional oil use will average at 3.67mn b/d in 2010 and then rise to around 4.14mn b/d by 2014.

Regional oil production, in 2009, averaged at an estimated 9.69mn b/d. It is set to rise to 11.79mn b/d by 2014. Oil exports show gradual growth, because demand growth is stalling the pace of supply expansion. In 2001, this region was exporting an average 4.86mn b/d. This total rose to an estimated 6.19mn b/d in 2009, and is expected to reach 7.66mn b/d by 2014.

Libya's demand for natural gas is expected to reach 175.9bcm by 2014, production of approximately 391.9bcm, which suggests a rise of net exports from 120bcm in 2009 to 216bcm by the end of the period. In 2009, Libya consumed an estimated 5.44 per cent of the region's gas, its market share forecast for 2014 is estimated at 4.49 per cent. It contributed 7.42 per cent to regional gas production, in 2009, and by is expected to account fore for 8.93 per cent of supply by 2014.

Libya is currently fourth place of BMI's composite Business Environment (BE) ratings table, which combines upstream and downstream scores. It continues to occupy first place, above Gabon, with a comfortable margin over its nearest rival of three points. The country's score m benefits from its proven oil reserves and a region-topping oil reserves-to-production ratio (RPR).

Source: Companies and Markets

For more news and expert analysis about Libya, please see Libya Focus and Libya Politcs & Security.