Libya's oil money, The NOC (ranked 25 among the world’s Top 100 Oil Companies) and the 100% state-owned Central Bank of Libya (CBL). Currently, Libya owns and issues its own money. That's not good for international, free-market finance!
So what does the NOC do exactly. Maybe the quote you have at the end of the article might help us give us an hint there:
"Winners of Libyan exploration acreage are determined largely based on how high a share of production a company is willing to offer NOC. Whichever companies offer NOC the greatest share of profits is likely to win. In addition, oilfield developers initially bear 100 percent of costs (exploration, appraisal, training) for a minimum of 5 years, while NOC retains exclusive ownership."
Who do you think are the
"winners of Libyan exploration" and
"oilfield developers"?
According to this small Reuters
article, the foreign oil companies produce 460.000 bpd, out of the 1.3m Libya usually do.
Foreign oil companies as of today, thus accounts for a third of Libya production.
"On behalf of the NOC.". Indeed, but then again, I was under the impression that it was the same in all oil countries: you have to be awarded the right to exploit a land that the country owns, by definition, and as such only a public office or company can grant it. Well, last I checked, they were doing the same thing in current Iraq: the Ministry of Oil, which have absorbed the former National company, grants oilfields very much like Libya: on the basis of the profit/price that oil companies offers them. Joint ventures between the national company and foreign oil companies are also common.
By the way: who owns Saudi Aramco?
Really? Weren't you the one who posted a link about the BP deal with Libya for 900m$? How many foreign companies are operating in Libya, do you think?
I cannot help but to notice in the article you cite the following:
The head of Libya’s National Oil Corp., Shokri Ghanem, has his eye on expanding gas exploration and production in a bid to raise exports to Europe, as well as privatizing oil refineries and the petrochemical sector
The government of Muammar Gaddafi has relied on foreigners to scout for new wells and bolster current production
(...)
Libya’s national oil company chief has talked about the need for foreign investments
Gaddafi was very willing to "privatize" the damn thing, and they want foreign money and companies to come and exploit the oil, because NOC and Libya were aiming at seriously increasing their production and exports. Exports, by the way, that were already heavily sent to Western Europe.
http://www.eia.doe.gov/countries/cab.cfm?fips=LY
I was under the impression that Libya had nationalized its oil fields. Maybe I'm wrong.
The very article you link to has
"Nationalization threats" in the very title. So obviously...
Like Venezuela, Libya pursues socialist policies rather that free-market ones, investing oil profits in free health care and education systems, as well as supporting projects in other African countries.
Beautiful.
Or maybe they also invest it in Oilinvest/Tamoil.
Tamoil is a former Lebanese company that Libya bought completely, and who happens to operate a large number of oil activities (refinery, gas stations, etc...) in Europe, mainly the Netherlands, Germany, Swiss and Italia, country where they help mounting supporting projects as well.
You may know the name, because it was featured at one point on the shirt of the famous football club of Turin, the Juventus (you know, belonging to Agnelli family). Tamoil signed a deal potentially over 100m €, that was called off when the Juventus was involved in a major scandal. All in the name of socialism.
What's even funnier, is that back in 2007-2008, Libya was very much willing to sell two thirds of the share of Tamoil (which belong to sovereign funds, the NOC, etc...). For
4 billion dollars, to Colony Capital, a famous americanprivate equity firm. Please note that the Carlyle Group (yes, the very one) was among the bidder.
The deal did not went through
ultimately. But it does not change the fact that Libya was very much willing to privatize its "foreign" oil interests.
Libyan sovereign funds are also active in other foreign investments. They were the biggest shareholders (over 7%) in italian major bank Unicredit.
Most of Libya's oil prospects remain unexplored as a result of past sanctions and disagreements with foreign oil companies.
Don't worry, since the sanctions were lifted off, they were clearly trying to make up for the lost time.
