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The Oil & Gas Sector Saleh M A Rahuma

The Oil & Gas Sector Saleh M A Rahuma. LIBYAN BRISTISH BUSINESS COUNCEL WORKSHOP NOVEMBER - 2008. NATIONAL OIL CORPORATION. L B B C WORKSHOP LIBYAN OIL GAS SECTOR NOVEMBER - 2008. NATIONAL OIL CORPORATION .. OVERVIEW EXPLORATION PRODUTION & PIPELINES REFINERY & PETROCHEMICALS

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The Oil & Gas Sector Saleh M A Rahuma

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  1. The Oil & Gas Sector Saleh M A Rahuma

  2. LIBYAN BRISTISHBUSINESS COUNCELWORKSHOPNOVEMBER - 2008 NATIONAL OIL CORPORATION

  3. L B B C WORKSHOPLIBYAN OIL GAS SECTOR NOVEMBER - 2008 NATIONALOIL CORPORATION .. OVERVIEW EXPLORATION PRODUTION & PIPELINES REFINERY & PETROCHEMICALS TECHNICAL SERVICES ENGINEERINGS (BASIC, FEED, DETAILED) FEASIBILITY STUDIES SUPPLY OF MATERIALS SPARE PARTS EQUIPMENTS TRAINING & EDUCATION

  4. Libyan Business Welcomes You Abdul M Al Mayet

  5. REFRESHMENTS

  6. Case Study Law No. 5 Projects and other legal issues Cyril Vock

  7. Doing business in Libya Law n°5 for Promotion of Investment of Foreign Capital November 2008 Aberdeen - London Libyan British Business Council – UK Trade & Investment Cyril Vock Energy, Transport and Infrastructure Paris + 33 1 53 05 16 00 cyril.vock@dentonwildesapte.com

  8. Sectors open to foreign investment Agriculture Industry Health Tourism Oil (drilling & exploration already governed by Petroleum Law) Regional development Any other sector approved by the NGP Law n° 5 : Scope • Sectors traditionally restricted but opening up • Telecommunications • Banking & financial services • Retail, wholesale and catering

  9. Law n°5 – The key incentives • A 5 year tax exemption from income tax • A 5 year exemption from customs duties on equipment and materials to set up a project, on raw materials, components and spare parts • Goods to be exports exempt from production tax, excise tax and fees • Exemption from stamp duty on commercial documents • Protection against nationalisation • Facilitation of foreign investment procedures • No limit on foreign participation

  10. Start of project within 6 months of notification of approval Submission of quarterly reports on the activities of the project to the FIB Priority employment to Libyan citizens Maintain regular books account / financial records Prepare an annual balance sheet + a profit and loss account Start operations within the 6 months after FIB approval Submit a the final statement of account + general budget to FIB and the Tax department Submit quarterly activity report Right to own a land Right to open a foreign currency account Right to repatriate capital Right to re-transfer uninvested capital abroad Right to employ foreign manpower Law n° 5 : A balance of duties and rights

  11. Options to do business in Libya (1) • Set up a branch office / local subsidiary • Create a joint venture • Open a representation office – specific product groupings concerned

  12. Options to do business in Libya (2) The need to register • All foreign companies wishing to work in Libya must register with Ministry of Economy and Commerce • You cannot operate without it • What happens if you don’t • What you need to register a foreign company branch

  13. Case Study Starting up in Libya Sean Granville

  14. Doing Business in LibyaSurecleanCase Study Presented by Sean Granville

  15. Leading service provider in the onshore & offshore Oil and Gas, power generation, civil, utility and municipal industries. Established in 1985. UK company (HQ based in the Scottish Highlands) with two regional facilities located in Aberdeen. Industry focused, offering specialist services to Oil Majors, Management Contractors, service contractors and engineering companies. Current Turnover £10.5m, with a core, specialist, yet multi disciplined workforce in excess of 100 and owned equipment value £6m. Who are we?

  16. Service Scope

  17. Global Experience • Danish Offshore Sector • Dutch Offshore Sector • Norwegian Offshore Sector • Europe(Italy, Moscow) • North Africa (Egypt, & Algeria) • West Africa (Cameroon, Nigeria, Equatorial Guinea, Ivory Coast & Angola) • Caspian (Azerbaijan, Turkmenistan) • Venezuela • Gulf Cooperation Council (Kuwait and Oman) • Canadian Offshore Sector • Gulf of Mexico

  18. www.sureclean.co.uk 10 River Drive, Teaninich Industrial Estate, Alness t + 44 (0)1349 884480 f + 44 (0)1349 883612 Blackdog Industrial Centre, Murcar, Aberdeenshire t + 44 (0)1224 701400 f + 44 (0)1224 701414 Why overseas? Why Libya?

  19. www.sureclean.co.uk 10 River Drive, Teaninich Industrial Estate, Alness t + 44 (0)1349 884480 f + 44 (0)1349 883612 Blackdog Industrial Centre, Murcar, Aberdeenshire t + 44 (0)1224 701400 f + 44 (0)1224 701414 First visit Desktop study – PEST and SWOT Analysis Revisit to validate research Meeting with possible agents, JVs or partners

  20. Dolphin Oilfield Services • Environmental Impact Studies • Site surveys • Base-line survey (BLS) • Environmental Impact Assessments (EIA) • Drill Cutting Treatment • Solidification • Bioremediation • Thermal desorption • Waste Management and Disposal • Exportation • Hazardous waste handling

  21. Dolphin Oilfield Services CLIENT LIST • TOTAL E & P • WINTERSHALL LIBYA B.V • VERENEX • LASMO • RWE DEA NA/ME GmbH • VEBA OIL OPERATIONS • ENI OIL COMPANY • MILLITAH GAS B.V. • ZUETINA OIL COMPANY • ARABIAN GULF OIL COMPANY • AKAKUS OIL OPERATIONS • MABROOK OIL OPERATIONS CPTL www.dolphinoil.com Al Amaween Street, Hay Al Andalus 2 P.O. Box 2108 Tripoli, Libya Tel/Fax: +218 21 478 1932/3

  22. www.sureclean.co.uk 10 River Drive, Teaninich Industrial Estate, Alness t + 44 (0)1349 884480 f + 44 (0)1349 883612 Blackdog Industrial Centre, Murcar, Aberdeenshire t + 44 (0)1224 701400 f + 44 (0)1224 701414 Where are we now?

  23. Case Study Supplying goods and services through another UK company in Libya Simon Berdai

  24. Case Study Selling direct to Libyan companies/organisations Craig Wood

  25. Craig Wood Emergency Response Services

  26. ERS back ground • Security • Training for health and first aid • Rescue work • Provision of services to the NHS

  27. Libya • October 2006 • The initial step • The introductions • The plan

  28. Building Relationships • June 2007 for first course • Signed agreement with hospital • Working with the hospital independently • Training well received across the board

  29. Building Relationships • Further courses ongoing • Driver training • Ambulance training

  30. Building Relationships • Working with oil and gas industry • Joint venture V’s law 5 venture • Local presence

  31. Invaluable assistance • British Embassy Tripoli • Business development • Friendships • Investment in permanent on site staff • Friendships • Local knowledge

  32. Questions

  33. Case Study Selling direct to a Libyan government agency David Cash

  34. Financing Trade Mike Galer

  35. Financing Trade LBBC – November 2008

  36. Topics • About BACB • The Impact of the Credit Crunch • Trade Finance Dynamics • Libyan Payment Solutions

  37. BACB’s Libyan Credentials • “Libya in London” • UK Head Office • “A”- rated & UK regulated • Associate HSBC Group • > 35 years market coverage • Shareholders • Libyan Foreign Bank 26.3% • Physical Presence in Libya • Authorised office/local staff • Libyan Clients • Most Libyan banks & Oil companies

  38. Credit Crunch • Started with sub-prime US Mortgages • Heavy losses leading to some bank failures and widespread rescue packages • Loss of trust between banks • Freezing up of interbank markets • Rise in borrowing costs • Move to wider economy • Economic slowdown • Collapsing asset and commodity prices • Deteriorating terms of trade • Recession

  39. Credit Crunch – Oil Prices

  40. Credit Crunch – Freight Rates

  41. Establishing Trust

  42. Libyan Challenges • Bureaucracy • Market is opening • New policies in place e.g. Need for Libyan partners • Legal, Accountancy and Tax issues • Change usually takes longer in practice • Complexity • NOC • Oil Companies • Intermediaries e.g. Oil Sector

  43. Libyan Challenges • Oil Sector (continued) • Arrival of the majors • Closure of EU Procurement Offices

  44. Libyan Challenges • Communication • Email / Mobile communications • Use of English in international trade • Bonding • Wording (e.g. non-contestation clause) • Acceptable bank names • Managing costs • Getting Paid ! Equipment Consultancy & Training Opportunities

  45. Trade Solutions

  46. Libyan Payment Solutions • BACB provides a broad range of Libyan payment solutions including: • OPEN A/Cas paying agent • COLLECTIONS London presentation (BACB clients) • L/C ISSUANCE existing facilities for oil sector clients • L/C CONFIRMATION as correspondent of Libyan banks • BONDING Bid / AVP / Performance • BACB aims to be as flexible as possible

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