Energy Conference Malta 2014 NOC - Libya Energy Conference Malta 2014 Libya Gas Overview By: G H Gadalla, NOC Board Member

Presentation Outline: Libyan Gas review Gas Utilization & Sales Shale Oil & Shale Gas New Gas Dev. Projects Distribution of Exported Libyan products 2013 EU Oil & Gas companies working in Libya Conclusion

Current Gas Reserves Status Libya Gas Review Current Gas Reserves Status Libya, with its discovered estimated natural gas reserves of more than 55 TCF, is one of the large gas potential countries. So far, country’s actual gas reserves have been largely unexploited and unexplored. it is believed that the remaining prospecting gas resources exceed 100 TCF.

Estimated Gas Reserves Libya is the 4th largest gas potential country in Africa

Libyan Gas Review Libyan discovered proven gas reserves (*) Total gas reserves : 54.6 TCF 18.4 TCF, 34% 36.2 TCF, 66% (*) Above reserves do not include latest discovered offshore and onshore gas reserves estimated between 5-10 TCF. NOC TM # 17,May,2002 5

Large Area (˜50%) of the country remains unexplored. Sirte Basin Ghadames Basin Murzuq Basin Kufra Basin Cyrenaica Platform Pelagian Basin Offshore Sirte Basin

Libyan Gas Review Prolific basins and gas locations The most prolific discovered gas reserves are located in Sirt, Ghadames, Murzuq Basins, North Western offshore blocks and North Sirt basin offshore. NOC TM # 17,May,2002 7

Discovered (not-developed) Western Onshore Gas Fields (. ) Discovered (not-developed) Western Onshore Gas Fields (*). So far only Wafa Gas Field has been developed

Offshore Gas Fields North West offshore fields, in Concessions , 35, 41 & 137. Estimated reserves ˜15 TCF New offshore discovery (2009), Arus El Bahr, by HESS in Gulf of Sirte, Area 54. Estimated reserves 5.0 TCF

North-West Offshore Gas Fields Gas Reserves: 14.9TCF Bahr Esselam is the only developed gas field: Current production capacity is 950 MMSCF/D. Feasibility studies on other offshore gas field developments is in progress. Expected additional gas rate is 600 MMSCF/D in 2018.

National Energy Strategy Until recently, crude oil was the major target of hydrocarbon resource for exploration and exploitation; Due to increasing demand for gas by domestic and international consumers, NOC has adapted a National Energy Strategy to; Explore new resources, Develop discovered gas fields, Utilize associated gas from oil fields (zero gas flaring) Expand and upgrade gas production infrastructure and capacity of the country and expand domestic gas utilization (i.e. power, distillation, industries, petrochemicals and city gas)

Current Developed Free Gas reservoirs Current gas production is realized from Free (Non Associated) Gas Reservoirs, and Associated gas from oil reservoirs Millitah , Bahr Essalam Field 950 MMCF/D Developed Free Gas Reservoirs: Millitah, Wafa Field, 620 MMCF/D

First Free Gas Producer was in 1978 by Sirte Oil Company 1989, Assumood, 80 MMCF/D 1978, Hatiba, 200 MMCF/D 1990, Sahl, 70 MMCF/D 2005 Attahadi, 350 MMCF/D

Free Gas Production rate by company, 2009 Libyan Gas Review Free Gas (Non Associated Gas Producers) Mellitah & Sirte Oil are the major free gas producers Free Gas Production rate by company, 2009 Gas Prod Rate, MMCSF/D Sirte Oil: 456 MMCF/D Mellitah: 1193 MMCF/D NOC TM # 17,May,2002 14

Gas Utilization & Sales

Current gas pipelines and Export line to Europe

Libyan Gas Review West Libyan Gas Pipeline Project Jointly with ENI Company; West Libyan Gas Pipeline Project was completed in 2004 and first gas export thru the 32” pipe line, along the Mediterranean Sea to Europe, was commenced in the same year. The gas export capacity of this pipeline has been supplied from onshore Wafa Field and offshore Bahr Esselam Fields at around 1050 million SCF/D. Development of the other discovered offshore blocks in the Concession 41 is under planning stage to further back up this pipeline. NOC TM # 17,May,2002 17

Main Coastal Gas Pipeline and Gas Utilization, MMCF/D

Free Gas (Non Assoc.) & Associated Gas production forecast (2012-2021)

Estimated Unrisked Shale GIIP Resources (Year 2010) 547 TCF After Petrenel

Shale Oil & Shale Gas In Place (Risked) Total = 614 BBO Billion Barrels Total = 943 TCF TCF After EIA/ARI JUNE 2013

Gas utilization Until 2004, Sirte Oil Company was only gas producer from Sirte Basin gas fields, Attahadi, Hatiba, Sahl and Assumud. Production was utilized for petro- chemical products and LNG Plant in Marsa El Brega refinery and for local industry consumers Now Libya wants to extend use of natural gas for; country’s power generation manufacturing, supply gas for the international market. Feasibilities of new gas field development and gas utilization projects are underway

New Gas Field Development Projects Gas & Condensate Fields In NC-5, 7 & 8 (Under study: potential up to 400 MMSCFD) Fariegh Field Potential up to 180 MMSCFD, (under commissioning). NC-98 & NORTH GIALO 6J (gas will be recycled to reservoir to maximize recovery; condensate production up 100,000 bbls/day from each field) Offshore Fields (NC-41) (Discovered structures have potential to produce 600 MMSCFD)

Projects to Enhance Gas Utilization Upgrade gas shipping capacity of coastal line Al Jurf gas utilization / re-injection Hatieba gas plant upgrade Jebel gas lift upgrade Nasser gas lift upgrade Bouri gas utilization (off shore) Sarir Messla gas utilization Nafoora gas utilization Amal & Ghani gas utilization

Downstream features of master plan projects Refining Azawia Refinery expansion and development Project: New Capacity 220 - 300 kbbl/d Units: CDU, RFCC, Alkylation, Treatment, etc South Refinery: New small (30 kbbl/d) hydro skimming refinery Toboruk Refinery: New grass root refinery, processing capacity of 220- 300 kbbl/d Petrochemicals Mellita Complex Project : Feed : Naphtha derived from Azawia refinery and condensate from Mellita gas plant ethane from deep extraction unit Units : Ethane extraction, Reforming, Steam cracking, Aromatic plant, many other units, Main products: Several grads of polyethylene, other ethylene derivatives, propylene and its derivatives, benzene and p- zylene and their derivates, butadiene, etc

Downstream features of master plan projects Petrochemicals West Benghazi Petrochemical Complex: Feed: Naphtha derived from Toboruk refinery and condensate from Brega and Zwitena gas plants, ethane from extraction unit Units : Ethane deep extraction, Reforming, Steam cracking, Aromatic plant, many other units Main Products: integrated with Mellita Complex Raslanuf petrochemical plant development: ethane extraction unit, steam cracker new, ethylene – propylene co- polymerization unit , other available products will be integrated with west Benghazi petrochemical complex

Total Exported products 2013 Quantity Crud oil MB 250 Oil Products KTM 1,286 Neutral Gas MPTU 171 LNG + Condensate 1,881 Petrochemicals 409

Distribution of Exported Libyan Crud oil 2013

Distribution of Exported Libyan Oil products and petrochemicals 2013 Petrochemicals Oil Products

EU Oil & Gas companies working in Libya

Conclusions Libya is one of the large gas potential countries with its discovered gas reserves estimated at 55 TCF with an estimated prospecting remaining resources of about 100 TCF The large offshore gas discovery by HESS in 2009 in block 54 offshore Sirte Basin has opened a new exploration potential in this area. Construction of West Libyan Gas Pipe in 2004 from Millitah to Italy has opened an outlet for Libyan gas to the European Markets. Daily gas export rate to Italy is around 800-900 million SCF/day. As per foreseen substantial gas demand from local and international markets, NOC has set steps towards utilization of the entire produced associated gas. As a part of development the country’s gas infrastructures, the coastal pipeline system, feeding the various industries in the country, has been extended to the west to meet the local demands and integrate with the international export outlets.

Additionally, NOC plans to build a complete gas pipeline network along the country’s gas resources to utilize all associated (Zero flaring) and non associated gas. Major gas development and gas utilization projects are underway in Sirte and Ghademes Basins. EU must play an important role for setback the stability of Libya. Libya one of the best Energy source for EU because Libya considered a very close and save source of energy. The Libyan Conventional and unconventional reserves is able to support the EU energy requirements for long period of time. The new Libya is open for the new investment ides to exploiting the deferent resource of energy ( oil & gas, Wind, Sun solar….. ). Libya has the youth have the ability to learn, work and participate in the development of the country.

Thank You For Your Attention