National Oil Corporation - Exports

Exports

Most of the petroleum products produced by the National Oil Corporation are sold on a term basis, including to the country's overseas oil retail and marketing network Oilinvest, also known as Tamoil. Through Tamoil, Libya is a direct producer and distributor of refined products in Italy, Germany, Switzerland, and Egypt. Tamoil Italia, based in Milan, controls about 7.5% of Italy's retail market for oil products and lubricants, which are distributed through 3,000 Tamoil service stations. Libya's ability to increase the supply of oil products to European markets has been constrained by Libya's refineries' need for substantial upgrading to meet stricter European Union environmental standards in place since 1996. In June 2007, U.S.-based Colony Capital reached an agreement to take over 65% of Tamoil, while the Libyan government will retain 35%. Libya will continue to control Tamoil Africa, which operates retail stations in Egypt and Burkina Faso, as well as other African nations. NOC oil is also sold on a term basis to foreign oil companies like Agip, OMV, Repsol YPF, Tupras, CEPSA, and Total; and small volumes to Asian and South African companies.

With domestic consumption of 284,000 bbl/d (45,200 m3/d) in 2006, Libya had estimated net exports (including all liquids) of 1.525 million bpd. The majority of Libyan oil exports are sold to European countries, such as Italy (495,000 bpd), Germany (253,000 bpd), Spain (113,000 bpd), and France (87,000 bpd). After the lifting of sanctions against Libya in 2004, the United States has gradually increased its importation of Libyan oil; the U.S. imported an average of 85,500 bbl/d (13,590 m3/d) of total Libyan oil exports in 2006, up from 56,000 bbl/d (8,900 m3/d) in 2005. Italy's Edison S.p.A. has committed, under a "take-or-pay" contract, to taking around half (140 Bcf per year) of the natural gas from the WLGP, and to use it mainly for power generation in Italy. Besides Edison, Italy's Energia Gas and Gaz de France committed to taking around 70×10^9 cu ft (2.0×109 m3) of Libyan natural gas. Another 70×10^9 cu ft (2.0×109 m3) per year is to be produced from WLGP for the domestic Libyan market (feedstock or power generation) or possibly for export to Tunisia.