LIBYA OIL & GAS MARKET OVERVIEW

1. LIBYA OIL & GAS MARKET OVERVIEW BassamDrebika - United Energy Services Tripoli, Libya

2. Agenda • Libya in Figures • Market Overview • Oilfields Map • Offshore Activity • Current Business Opportunities • Establishing a Business in Libya • Questions & Answers

3. Libya in Figures Area : 1,759,540 km2 Population : 6,310,434 GDP : 88.86 billion USD GDP : growth 6.3% GDP per capita (PPP) : 14,400 USD Unemployment : 20.7% Population below poverty line : 7.4% Inflation : 5.8% Exports : 66.13 billion USD Imports :20.64 billion USD Exchange rate : Dinar/USD= 0.77 Source: The World Fact Book – 2008 Data

4. Market Overview (1) • UN Sanctions against Libya were lifted in 2003 followed by full constrains removal by mid 2006, helping Libya attract greater foreign direct investment. • Libya, in the past five years, have made progress on economic reforms as part of a broader campaign to reintegrate the country into the international fold. • Libyan economy depends primarily upon revenues from the oil sector. which contribute about 60% of public sector wages. • Libya was ranked first place, in BMI’s updated Upstream Business Environment rating, with a comfortable margin of three points: proven oil reserves region-topping oil reserves-to-production ratio (RPR) good licensing terms

5. Market Overview (2) • State owned, National Oil Corporation (NOC), accounts for about half of the country’s oil and gas production and 100% of the country's refining capacity. • Libyan oil & gas licensing rounds continue to draw high international interest; NOC set a goal of nearly doubling oil production to 3 million bbl/day by 2012. • Libya still faces a long road ahead in liberalizing the socialist-oriented economy, but initial steps - including applying for WTO membership, reducing some subsidies, and announcing plans for privatization - are laying the groundwork for a transition to a more market-based economy.

6. Libya Oilfield Map & Licenses

7. Offshore Activity Exploration phase: CNPC         area 17/4 Amerada area 54 - 4,000 km of 2D marine seismic awarded to SCAN Japex            area 40/3&4 - conducted 2D & 3D seismic surveys BP  area 37, 38 & 39 - world’s largest 3D seismic acquisition and onboard processing contracts awarded to Wavefieldinseis Drilling phase: Nippon area 2/1&2 - wildcat well is being drilled Petrobras        area 18 – wildcat well is being drilled by drillship Songa expected TD in Sep-09 Petramina     area 17/3 - wildcat well is being drilled ExxonMobil        area 20, 21 & 44 - completed 2D & 3D seismic - wildcat well is being drilled. Woodside area 35, 36, 52 and 53  - drilled 4 dry wells Repsol                  NC 129 & NC 173 - first offshore hydrocarbons discovery Production phase: EniBouri field on Block NC 41 - production since 1976 at 70,000 b/d Total Al Jurf field on Block C 137 - developed in 2003, producing 40,000 b/d.  

8. Establishing a Business in Libya • Using an Agent or Distributor • Establishing an Office Representative Office Branch Office • Entering as a Joint Venture/Joint Stock Company • Entering Libya Under the Terms of Law No. 5 of 1997 (Encouragement of Foreign Investment)

9. Thank You For any questions or comments in regards to this presentation, please contact: BassamDrebika Managing Director United Energy Services +218 21 721 3654 +218 21 362 1485 +218 91 381 5467 Email: info@ues-corp.com