Dear Reader,

I am pleased to attach the latest monthly Libyan Business Review. The Libyan Business Review provides a concise monthly review of major developments so that you are able to identify potential opportunities.

"Gazprom announced on 9 July that it was prepared to buy at market prices all Libyan oil and gas intended for export, and that talks were beginning on buying currently available volumes of hydrocarbons. This was interpreted in the media as a threat by Gazprom to "grab" control of Europe’s energy supplies. The chairman of the Libya National Corporation immediately commented ``Libya’s traditional customers shouldn’t worry. Gazprom offered to buy whatever gas or oil Libya has available for selling, or that has no buyer. It is not offering to take all of Libya’s production.’’

Egypt and Libya have been working on boosting their energy cooperation along with a vow to increase their trade exchange and joint investment. Portugal and Libya also agreed to boost cooperation in the oil and gas industry while allowing Libya to invest inside and outside Libya.

If you would like to learn more about this newsletter or forthcoming events, or perhaps would like to suggest an event or article for inclusion in the next edition, please do not hesitate to contact me at admin@meconsult.co.uk

Kind regards,

Cem Dedeaga, Editor.

MEC International Ltd.
132-135 Sloane Street
Granville House, London SW1X 9A

Tel: 020 7591 4816, Fax: 020 7591 4801

Email : admin@meconsult.co.uk   

www.meconsult.co.uk

Gazprom Offers to Buy All Libya’s Oil and Natural-Gas Exports

10.07.2008(Bloomberg)

OAO Gazprom, Russia’s state- controlled energy company, offered to buy all oil and gas available for export from Libya, threatening to grab greater control of Europe’s energy supplies.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=awrKJa72qzik

Gazprom Readies Power JV in Libya

14.07. 2008

ARKHANGELSK — Gazprom is planning a joint venture in Libya to build electricity capacity, the firm said Friday.
"We will jointly work in the electricity sphere. We will build new power-generating capacity," Gazprom spokesman Sergei Kupriyanov told journalists.
He declined to name a time frame or volumes.
Gazprom and Italian energy major Eni formed a strategic partnership in 2006 that allowed for energy asset swaps, including those Eni has in Libya. The two have previously said the deal also involved pipelines.

http://www.themoscowtimes.com/article/1009/42/368908.htm

Libya to Cut Oil Production Because of Pipeline Work (Update2)

By Maher Chmaytelli and Alexander Kwiatkowski

15.07.2008 (Bloomberg)

Libya, North Africa’s largest oil producer, will cut output by 5.7 percent because of pipeline maintenance, trimming supplies at a time of near-record prices.

http://www.bloomberg.com/apps/news?pid=20601116&sid=a.0Yu7_q75n4&refer=africa

Libya urges EU to revise illegal immigration rules

15.07.2008

TRIPOLI (Reuters) - Libya called on the European Union to revise new rules against illegal immigration on Monday, saying it would urge African Union members to take action if the EU stuck by measures that treated African migrants as criminals.

http://africa.reuters.com/top/news/usnBAN525269.html

European energy giants scramble to take advantage of new access to North Africa

16.07.2008

With stability returning to Algeria and UN sanctions lifted from Libya, European energy giants are vying with each other to tap new sources of natural gas and oil in overreliance on Russia - and beat the United States to the  punch.

http://www.iht.com/articles/2008/07/16/business/energy.php

Libya: Tourism is the Most Common form of Foreign Direct Investment!

16.07.2008

In February I wrote in the Tripoli Post that official Tunisian statistics reported that as many as 1.5 million Libyans visited Tunisia in 2007. Recent Tunisian reports also revealed that in 2007 six million tourists visited Tunisia spending US$ 2.5bn. That works out at about an average of US$ 416.00 spent per visiting tourist. I also wrote that according to official statistics, Libya has received over the last 3 years on average a maximum of 200,000 tourists per year.

http://business.africanpath.com/article.cfm?articleID=67315

Egypt, Libya seek to boost energy cooperation

16.07.2008

CAIRO, July 16 (Xinhua) -- Egypt and its western neighbor Libya are keen on boosting bilateral cooperation in the fields of electricity and energy, the Egyptian state MENA news agency reported Wednesday.

http://news.xinhuanet.com/english/2008-07/16/content_8557607.htm

Natco Group gets $24.9M contract in Libya
16.07.08

HOUSTON - Oil services company Natco Group Inc. said Wednesday is has received a $24.9 million contract to provide membrane technology for an oil field off the Libyan coast.

http://www.forbes.com/feeds/ap/2008/07/16/ap5223375.html

Hill International bags £5bn university work in Libya

16.07.2008

Consultant to provide pre-construction and design management services for 27 campuses. Consultant Hill International has been appointed to a £5bn project that will involve building 27 university campuses across Libya.The firm said it will provide pre-construction and design management services on the campuses, which will each accommodate 2,500-13,500 students.The one-year contract, awarded by the Libyan Ministry for Higher Education, has an estimated value of £5.7m ($11.5m).

http://www.building.co.uk/story.asp?sectioncode=284&storycode=3118371&c=0

OMV extends oilfield contract with Libya’s NOC until 2032
17.07.08

VIENNA (Thomson Financial) - OMV AG said it has signed an agreement with Libya’s National Oil Corporation (NOC) to extend the Austrian group’s onshore exploration contracts for two blocks in the Murzuk basin.

http://www.forbes.com/afxnewslimited/feeds/afx/2008/07/17/afx5224741.html

Libya, Portugal sign investment agreements

20.07.2008

TRIPOLI, July 20 (Reuters) - OPEC-member Libya and Portugal have signed two accords to boost cooperation in the oil and gas industry and allow the north African country to carry out investments inside and outside Portugal, Libya’s official news agency Jana said.

http://uk.reuters.com/article/oilRpt/idUKAHM04225020080720

Uganda cedes stake in oil pipeline to Tamoil of Libya, local investors

21.07.2006

There has been a new twist in the control and ownership of the long anticipated Eldoret-Kampala oil pipeline, with sources confirming to The EastAfrican that contrary to the original plan, Uganda will now only take half of 24.5 per cent stake it was supposed to take in the venture.

http://www.nationmedia.com/eastafrican/current/News/news2107200811.htm

Libya, Portugal to Increase Oil and Gas Sector Co-Operation

22 July 2008

Libya and Portugal have signed two new agreements to increase co-operation in the oil and gas industry and for the expansion of bilateral trade, according to the Libyan state news agency Jana.

http://www.redorbit.com/news/business/1489594/libya_portugal_to_increase_oil_and_gas_sector_cooperation/

UPDATE 1-Kenya wants Libya to share Essar refinery stake

23.07.2008 

Kenya wants a private sector stake in an oil refinery split between India’s Essar Oil  and Libya, the country’s energy minister said on Wednesday.

http://uk.reuters.com/article/rbssEnergyNews/idUKL2354724520080723

Ghanaian detainees in Libya call for S.O.S

 23.07.2008

One Ghanaian is reportedly dead and 150 others are in a fix after their attempt to cross the high seas into Italy ended abortively.

The stranded travellers who have been placing calls to Joy FM’s newsrooms, say they went through the desert and spent two weeks in Libya in an attempt cross the high seas to Italy unnoticed.

http://www.myjoyonline.com/news/200807/18588.asp

Swiss nationals charged in Libya

25.07.2008

Two Swiss nationals arrested last weekend by Libyan police have been charged with immigration offences and remanded in custody, the Swiss foreign ministry said last night.

http://www.ft.com/cms/s/0/5228d5d4-59e3-11dd-90f8-000077b07658.html

Libya: Italy will pay ’billions’ for colonial rule

25.07.2008

The eldest son of Libyan leader Moammar Gadhafi said Italy will pay billions to compensate the country for three decades of colonial rule, the state-run news agency reported Friday.

http://www.businessweek.com/ap/financialnews/D924SO880.htm

Libya and US discuss attack compensation: report

25.07.2008

TRIPOLI (AFP) — Libya and the United States have resumed talks on compensation for the relatives of US victims of Libyan terrorist attacks and Libyan victims of US air raids, the daily Oya said on Thursday.

http://afp.google.com/article/ALeqM5g2WFvv9OLN3c51UIKG2rhQeAYXww

RWE Dea Continues Successful Trainee Program in Libya

 25.07.2008

Eleven young Libyans signed an agreement at RWE Dea’s Representative Office in Tripoli to take part in a three-year trainee program. In the process, the Company is continuing its successful trainee program launched two years ago.

http://www.oilvoice.com/n/RWE_Dea_Continues_Successful_Trainee_Program_in_Libya/cd3f2cdc.aspx

Stand-off Libya halts oil to Switzerland

25.07.2008

OPEC member Libya is halting oil shipments to Switzerland in protest at the arrest of a son of Libyan leader Muammar Gaddafi, workers of the state-owned Maritime Transport National Corporation said yesterday, reports Reuters.

http://www.lloydslist.com/ll/news/stand-off-libya-halts-oil-to-switzerland/1216908520726.htm

Yara to establish joint venture in Libya

25.07.2008

Norway’s international fertilizer producer Yara and National Oil Corporation (NOC) of Libya / Libyan Investment Authority (LIA) have completed all major agreements to establish a joint venture for the production and marketing of mineral fertilizer.

http://www.norwaypost.no/cgi-bin/norwaypost/imaker?id=174316

Oil jumps above $140 on OPEC, Libya comments

26.07.2008

Oil futures shot above $140 Thursday after OPEC’s president said oil prices could rise well above $150 a barrel this year and Libya said it may cut oil production. Light, sweet crude for August delivery rose as high as $140.05 in afternoon trading on the New York Mercantile Exchange before retreating slightly to trade up $5 at $139.55.

http://ap.google.com/article/ALeqM5i5TtajgUpSm7KY5jf-lCJGHBB-tAD91HU4OO3

Verenex strikes oil in Libya

29.07.2008

Verenex Energy on Monday got a boost from a big discovery in Libya that observers say will put it on solid footing in the north African nation.

The company said the A1-47/04 new field wildcat tested more than 6,600 barrels of oil per day (bpd) along with 8.6 million cubic feet a day of natural gas from two separate geologic formations.

http://www.canada.com/calgaryherald/news/calgarybusiness/story.html?id=3d3eb0f5-74c7-468f-ae55-f1178d7af943

Libya, Egypt to increase trade exchange and joint investment

29.07.2008

The Secretary of the GPC of Economy, Trade & Investment met Monday afternoon with Egypt’s Minister of Investment and his accompanying delegation.
The meeting discussed what has been agreed on during meeting of the joint Libyan-Egyptian high committee in Cairo.

http://en.ljbc.net/online/news_details.php?id=3372