libya business weekly - issue 2 - 25.01.2013

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25TH JANUARY 2013 . issue 02 think global . connect local LIBYA BUSINESS WEEKLY Building Libya’s Future Ibrahim A. El Mayet - Tripoli - 24.01.2013 Libya offers abundant opportunities for international companies and contractors wishing to engage in the re- building and development of Libya’s Infrastructure, and despite the concerns over security and an uncertain legal framework foreign firms are eager to get to work as the sector looks set to move. Approaching the second anniversary of Libya’s Feb17 Uprising, and just over a year on from the Country’s liberation idle cranes remain a common sight in Libya’s capital city Tripoli. The industry remained in limbo throughout 2012 with concerns over security, legislation, what to do with existing contracts and an interim government without a mandate to make big decisions, stalling progress. After a long period of stagnation there are signs of movement in the Libyan construction industry where the post- conflict reconstruction programme is going to require spending of $200 billion over a ten-year period. Bullish on Libya’s economic development the IMF forecast Libya’s economy will grow by 16.7% in 2013 after experiencing a huge post-revolution bounce in 2012 with the resumption of oil exports. The Libyan holding companies and organisations responsible for the majority of public sector construction including the Organisation for Development of Administrative Centres (ODAC), and Libyan Investment & Development Holding Company (LIDCO) have been reactivated and are gearing up to restart work on projects; yesterday the UK government announced that ODAC’s assets would be unfrozen. Libya’s Housing and Infrastructure Board (HIB) has already signed contracts in December 2012 with foreign companies to resume projects in Tripoli worth an estimated LYD 1.1 billion. According to HIB, the total value of nationwide housing construction is LYD 45 billion. It is hoped that other projects currently under review will be restarted in coming weeks and months. International companies are essential to Libya’s reconstruction efforts and it is clearly an attractive market for them. Throughout 2012 hundreds of companies came to Libya including many new to the market. However concerns over security and the legal framework in Libya are major concerns for companies wishing to Contents P1 Note from Editor: P2 International Perspective u Germany, Netherland and UK pull citizens out of Benghazi u America to improve security for diplomats u Arab FM’s finalise draft agreement on Investment u British Ambassador appointed u Qatar agrees to work directly with Libyan authorities u Indian Ambassador discusses manpower with Labour Minister P3 Regional Focus u Libya will not be a hub for extremists u Libya-Egypt border closed to foreigners u Egyptian officials deny stating claim on part of Eastern Libya u Libya’s Minister of Culture attends Cairo book fair P4 Building Libya’s Future continued. P5 – P7 THE INTERVIEW – Maged Mahfoud – MD, ATEX – Construction P8 – P10 Business in Brief P8 Defence, constrction P9 Oil & gas, IT & Telcoms P10 Oil& Gas, Aviation P11 – P12 Feature – Algeria hostage tragedy prompts tightening of security at Libyan Oil & Gas facilities P12 – Upcoming Events Published by: ie. consultancy+ LONDON OFFICE 15 Bedford Square, London WC1B 3JA United Kingdom T: +44 20 7193 6404 E: [email protected] Skype: ieconsultancy TRIPOLI OFFICE Beny al Ahmer Street, Hay al Andalus, Tripoli, Libya T: +218 (0) 21 711 04 30 E: [email protected] Skype: ieconsultancylibya continued on page 4 Page 1

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Weekly Business Magazine covering business and economic issues in Libya. This issue features an Interview with Maged Mahfoud, MD of ATEX on the Libya Build Exhibition, and Construction in Libya.

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Page 1: Libya Business Weekly - Issue 2 - 25.01.2013

25TH JANUARY 2013 . issue 02

think global . connect local

LIBYABUSINESS WEEKLY

Building Libya’s Future Ibrahim A. El Mayet - Tripoli - 24.01.2013

Libya offers abundant opportunities for international companies and contractors wishing to engage in the re-building and development of Libya’s Infrastructure, and despite the concerns over security and an uncertain legal framework foreign firms are eager to get to work as the sector looks set to move.

Approaching the second anniversary of Libya’s Feb17 Uprising, and just over a year on from the Country’s liberation idle cranes remain a common sight in Libya’s capital city Tripoli. The industry remained in limbo throughout 2012 with concerns over security, legislation, what to do with existing contracts and an interim government without a mandate to make big decisions, stalling progress. After a long period of stagnation there are signs of movement in the Libyan construction industry where the post-conflict reconstruction programme is going to require spending of $200 billion over a ten-year period. Bullish on Libya’s economic development the IMF forecast Libya’s economy will grow by 16.7% in 2013 after experiencing a huge

post-revolution bounce in 2012 with the resumption of oil exports.

The Libyan holding companies and organisations responsible for the majority of public sector construction including the Organisation for Development of Administrative Centres (ODAC), and Libyan Investment & Development Holding Company (LIDCO) have been reactivated and are gearing up to restart work on projects; yesterday the UK government announced that ODAC’s assets would be unfrozen. Libya’s Housing and Infrastructure Board (HIB) has already signed contracts in December 2012 with foreign companies to resume projects in Tripoli worth an estimated LYD 1.1 billion. According to HIB, the total value of nationwide housing construction is LYD 45 billion. It is hoped that other projects currently under review will be restarted in coming weeks and months.

International companies are essential to Libya’s reconstruction efforts and it is clearly an attractive market for them. Throughout 2012 hundreds of companies came to Libya including many new to the market. However concerns over security and the legal framework in Libya are major concerns for companies wishing to

ContentsP1 Note from Editor: P2 International Perspectiveu Germany, Netherland and UK pull citizens out of Benghaziu America to improve security for diplomatsu Arab FM’s finalise draft agreement on Investmentu British Ambassador appointedu Qatar agrees to work directly with Libyan authoritiesu Indian Ambassador discusses manpower with Labour Minister

P3 Regional Focusu Libya will not be a hub for extremistsu Libya-Egypt border closed to foreignersu Egyptian officials deny stating claim on part of Eastern Libyau Libya’s Minister of Culture attends Cairo book fair

P4 Building Libya’s Future continued.P5 – P7 THE INTERVIEW – Maged Mahfoud – MD, ATEX – Construction

P8 – P10 Business in BriefP8 Defence, constrctionP9 Oil & gas, IT & Telcoms P10Oil& Gas, Aviation

P11 – P12 Feature – Algeria hostage tragedy prompts tightening of security at Libyan Oil & Gas facilities

P12 – Upcoming Events

Published by:

ie. consultancy+LONDON OFFICE15 Bedford Square, London WC1B 3JA United KingdomT: +44 20 7193 6404 E: [email protected]: ieconsultancy

TRIPOLI OFFICEBeny al Ahmer Street, Hay al Andalus, Tripoli, LibyaT: +218 (0) 21 711 04 30 E: [email protected]: ieconsultancylibya

continued on page 4

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Page 2: Libya Business Weekly - Issue 2 - 25.01.2013

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LIBYABUSINESS WEEKLY

International Perspective

Arab foreign ministers have finalised

a draft agreement on inter-Arab

investments to be presented at the

third Arab Economic Summit

- 21.01.2013

In press statements Saudi Arabian Finance Minister Ibrahim Al-Assaf said that if approved, the agreement would allow the free flow of capital and investments in member countries. It will also take into account legislation and systems for regulating economic activities and protection of the environment. The Summit opens on Monday in Riyadh.

Michael Aron officially appointed as

British Ambassador to Libya - 18.01.13

The role of British Ambassador to Libya will be officially be held by Michael Aron who has been acting Head of Mission following the early departure of Dominic Asquith. Speaking Arabic fluently, Aron previously held the role of Ambassador to Kuwait and Iraq. The newly appointed Ambassador said “Libya is at a critical period in its history and following on from the important contribution the United Kingdom made to the Libyan Revolution, we are determined to play a major role in the support of a successful transition to a democratic state.”

Indian Ambassador to Libya discusses

manpower business with Libya’s

Minister of Labour

The Indian ambassador to Libya met the Libyan Minister of Labour and Rehabilitation to discuss the bilateral relations in the fields of manpower and capacity-building between the two countries and consider a presentation on the development of professional training centres. During the meeting the Minister expressed his appreciation for the role of the Indian manpower in Libya, especially in the field of medicine.

Qatar will cease to deal with un-

official groups and individuals in Libya

- 19.01.13

Following his return from an official visit to Qatar, Libya’s PM Ali Zidan, has stated that Qatar has agreed to conduct itself through official channels with bi-lateral agreements and will cease dealing with Libya in the manner in which it has done previously. Public sentiment towards Qatar in Libya has soured since Libya’s liberation due to the perception that Qatar is meddling in Libyan affairs. Zidan also said “We value our friendship with Qatar... We want to correct relations which were exploited by the former regime.” The two countries have agreed to collaborate on a series of security, training and intelligence contracts including the training of 40 officers over a 4 year period at the Qatari Academy.

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Germany and the Netherlands joined

Britain in urging their citizens to leave

the eastern Libyan city of Benghazi -

24.01.2013 –

Current travel advice from the UK foreign office states that “We are aware of a specific, imminent threat to Westerners in Benghazi. We advise against all travel to Benghazi and urge any British nationals who are there against our advice to leave immediately,” advice which has subsequently been echoed by other countries. Libyan authorities have reacted with surprise at the move.Libya’s Deputy Interior Minister said that while there are issues in Benghazi, the Libyan authorities are not aware of any intelligence towarrant such a move.http://www.fco.gov.uk/en/travel-and-living-abroad/travel-advice-by-country/middle-east-north-africa/libya

America to radically improve security for

their diplomats - 23.01.13

America’s Secretary of State, Hillary Clinton, has stated that America will improve security for their diplomats worldwide. This is a response to the death of the American Ambassador to Libya in September last year, and disturbances in many other countries, also sparked by a video that greatly offended Muslims around the world. An independent review board, that was highly critical of the department, has highlighted 29 recommendations. In her testimony, Clinton claims that all will be implemented.

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LIBYABUSINESS WEEKLY

Regional Focus

Libya will not to be a hub for extremists

that threaten neighboring countries

- 19.01.13

Ali Zidan, Libya’s Prime Minister, has said that the authorities will not allow Libya to be used to enhance and supply attacks that threaten the security of bordering countries. This follows the terrorist attack on an Algerian gas complex near the Libyan-Algerian border. As a result of the instability caused by the revolution in 2011, the southern region of Libya’s desert has been used as a smuggling route by Al-Qaeda militants as well as other extremist and criminal organizations. The Libyan Government closed its borders with Algeria, Niger, Chad and Sudan last month as a temporary measure as part of attempts to control this problem whilst more long-term initiatives are put in place.

Libya-Egypt border crossing closed

to foreigners - 22.01.13

Due to high levels of drugs, arms smuggling and human trafficking, the Musaid border between Libya and Egypt has been closed to foreigners. Asian and African migrants, with hopes of reaching Europe, have been entering Libya in large numbers from Musaid and areas to the south of the border crossing. A spokesman for the Ministry of Interior stated that foreigners looking to enter Libya from Egypt would have to do so by air.

Libya’s Minister of Culture attends

Cairo’s International Book Fair

- 22.01.13

Alhabib Al-Ameen, Libya’s Minister of Culture, led a 250 strong delegation to Cairo on Tuesday to attend the International Book Fair. The size of the delegation has been met with both praise and criticism. Whilst breaking a record for the largest delegation to ever attend this event, Libyans celebrate the fact that their writers are finally getting the recognition they believe is deserved.

Egyptian officials deny stating a

claim to part of Eastern Libya

- 21.01.13

Egyptian Ambassador to Libya Hisham Abdul Wahib made an official statement denying statements made in a Lebanese newspaper which claimed the Egyptian Prime Minister, Hisham Qandil, believed Egypt had rights to parts of Eastern Libya. In his statement Abdul Wahib said “These alleged statements were not made by Qandil or any Egyptian Official” adding that, “Egyptian-Libyan relations are deeply rooted and cannot be affected by groundless reports”.

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LIBYABUSINESS WEEKLY

Building Libya’s futurecontinued from page 1

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engage with Libya. During 2012 a number of draft resolutions were proposed to amend the commercial laws for foreign participation, eventually the Ministry of Economy settled on Decree 207 which shifted foreign ownership from a maximum of 65% to a maximum of 49% (unless a specific exception is granted by the Ministry of Economy allowing ownership to increase to 60%). Joint Stock Companies established prior to Decree 207 (2012) have been given an extended period to restructure their shareholding under Decree 22 until a full review of commercial legislation has been completed. Without a solid legal framework and no specific timeframe for the review uncertainty will continue to be prevalent.

Even pre-revolution a great deal of work was required to bring Libya’s aging infrastructure into the 21st Century after decades

of neglect. Libya required new roads, housing, water treatment, ports and airports, additional power capacity, better public building and utilities, schools and hospitals, Libya’s infrastructure needed upgrading. Some areas suffered greater neglect under the Gaddafi regime including Libya’s second city Benghazi and the Nafusa Mountains in Western Libya. The damage caused by the eight months of fighting in 2011 has dramatically worsened the situation, with some towns and cities suffering severe damage during sustained fighting and shelling by the Gaddafi regime including Zawiya and Misurata. The task ahead is formidable, but the time has come to really start building the new Libya.

Housing in Misratah shows the scale of what is needed

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LIBYABUSINESS WEEKLY

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This week Libya Business Weekly sat down with Maged Mahfoud, Managing Director of ATEX International Exhibition Organisers – the organisers of the ‘Libya Build’ expo - at their Tripoli Offices to catch up on how they are progressing with their upcoming exhibition and discuss the outlook for the construction industry in Libya.

LBW: What were your experiences of holding the exhibition

in 2012 so soon after Libya’s Liberation, and how did it differ

from those held pre-revolution?

MM: Our offices had been closed from 16th February – 1st November 2011, we had to cancel the 2011 exhibition despite having confirmed attendance from exhibitors and receiving payment. We emailed them all on 16th February informing them that their money was safe and that the internet was likely to be cut soon. When we held our first meetings in November and reconnected with exhibitors we were unsure about holding the exhibition in 2012 mainly because of security concerns in

the capital, but were surprised by the number of exhibitors who wanted to come to Tripoli despite the security situation, economic troubles and lack of an elected government. In fact 2012 was our most successful year in the history of Libya Build with 637 companies attending; we occupied the whole of the Tripoli Fair ground at full capacity! It was a logistical challenge with over 1,500 foreigners visiting Tripoli we had to issue more than 1,000 visas. We worked closely with the Ministry of Interior to mitigate security risks. There was not a single incident which sent a strong positive message as well as giving a good boost to the economy. It showed a strong commitment from the international officials and companies who attended that they were willing to come to Libya despite the fact that we had no elected government, no business laws, and no business! International participants commented that they were impressed with the professionalism of visitors to their stands, and the new frankness with which they were able to speak and negotiate.

LBW: Who participated in the exhibition?

And how does participation break-down in

terms of countries?

MM: Participants represent the private sector. Of the foreign participants focusing on construction equipment, contracting, temporary housing units, ceramics and the like, the largest single group were Italian with 130 companies, taking up over 20 per-cent of the site. Turkish companies came next with 95 companies, Followed by the Egyptians, French and Maltese. We had a great turn-out from local companies with 237 Libyan exhibitors.

LBW: How has the exhibition evolved over

the years?

MM: Libya Build was first held in 2004 with 70 Companies exhibiting. In 2008 the regime [Gaddafi Regime] announced a budget of LYD 200 billion to spend on infrastructure detailing a wide variety of projects from roads to malls

The Interview

Maged MahfoudManaging Director of ATEX International Exhibition Organisers

Libya Build 2012 was officially opened by the Libya’s Minister of Economy, Mr. Ahmed Koshly and the Italy’s Deputy Minister of Infrastructure and Transport, Mr. Mario Ciaccia

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LIBYABUSINESS WEEKLY

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and hotels international interest in the Libyan market increased hugely. In 2009 we took over the whole Tripoli Fair receiving 541 exhibitors that year and 632 in 2010. Libya Build also got approval and became full member of the global association of the exhibition industry (UFI).

LBW: What is happening with existing contracts signed pre-

revolution? MM: There is a process to re-evaluate old contracts which is on-going; contracts are being officially reviewed by the Ministry of Economy. When we visited the Ministry of Economy last week they confirmed they are working on it, but the time-frame is unclear. Some contracts were corrupt and will be cancelled but it is likely that most will be reactivated. 2008 projects were mostly sound contracts and should be re-evaluated and continued. We shouldn’t automatically assume they were bad contracts because they were signed by Gaddafi. Many had been started and some priority projects like Tripoli airport were quite advanced 50% – 60% of the work has been done, and the money had been spent, it would be expensive to cancel the project and start again with new contractors, we should let the contractors get back to work. Right now there is no movement and it is losing money every single day paying for rent of cranes and equipment not to mention the degradation of the site.

LBW: Are we likely to see any movement in the industry

soon?

MM: Now we have a new elected government in place we hope they will proceed with projects we have heard some announcements from new Ministers as they start to outline their priorities, the Minister for Housing and Infrastructure recently stated that Libya needs 900,000 new housing units, however we have not yet seen concrete plans. Libya’s public institutions including HIB [Housing & Investment Board], LIDCO [Libyan Investment & Development Company] and ODAC [Organisation for Development of Administrative Centres] responsible for the majority of public sector projects are working, their offices are open and staff are working. Projects are not yet moving but they are preparing themselves to start very soon, there is no specific date but it they should start within weeks. However the important thing for international companies and investors is not the announcement of projects it is the law! What is the structure, is it 51 – 49? What is the capital required? Are they required to appoint a local agent? A solid framework is required to protect both investors and local companies; it will also help to eliminate corruption.

The Interview

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The new terminal building planned

for Benghazi airport.

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LIBYABUSINESS WEEKLY

LBW: What are the main priorities for Libya in terms of

Infrastructure moving forward? MM: There is so much reconstruction work housing is a priority, we also need to build bridges to relieve pressure on existing road networks, traffic is becoming an increasing problem. We should restart work on Tripoli’s new airport and other airports around the country including Benghazi and Misurata which are expecting a new terminal. But the main priority is rehabilitation of towns and cities damaged during the fighting.

LBW: What is new for Libya Build 2013?

MM: When we started planning the event in September the situation in Libya was unclear, we had no elected government, and Internationals were waiting for solid legal framework. We didn’t start actively promoting the event until the new government was sworn-in in November. We received so many requests it became clear that Tripoli fair was no longer large

enough so from this year the exhibition is moving to Sports City, it will be hosted in a single tented arena assembled for purpose allowing additional 20% capacity. The venue also has a huge car park. So far we have filled 85% of the available space with the Italian delegation doubling its space from last year while the French, Turkish, Egyptians and Tunisians have increased theirs by at least 25%. We are also receiving strong interest from official delegations from Malta, Austria, Spain, South Korea and China and expect a high turn-out from the UAE and Qatar. Sales close in mid-February, and we start setting up on 15th March for the exhibition on 19th May.

The Libya Build exhibition takes place in Tripoli Sport City from the 19th – 23rd May 2013. You can connect with Libya Build on Facebook – libyabuild, and Twitter - @libyabuild

The Interview

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LIBYABUSINESS WEEKLY

Business in Brief

Sillinger agree contract with Libyan Government at the first Libyan Technologies and Military Science Exhibition - 20.01.13

Sillinger, a specialist French boat company, has agreed to supply the Libyan armed forces with 50 Rigid Inflatable Boats (RIBS), the value of the contract has not been publicised. The three day fair, held at Tripoli’s Mitiga Airbase, was attended by government officials as well as senior representatives from the Army, Air force and Navy. Border protection and security in general were the key talking points at the fair, which was attended by companies from 16 different countries.

China and Bulgaria had companies exhibiting at the event, but there were none from Russia who were, under the previous regime, the main arms supplier to Libya. 65 companies attended the event, some of which had never been to Libya before, whilst others were claiming to have already won contracts with the new Libyan authorities. Security and armed forces are a key priority to the Libyan government with local militias still out of control and most of the borders with neighboring countries closed due to uncontrollable smuggling of arms, drugs and people.

Sirte will not be left out of Libya’s rebuilding and development programme as Deputy PM holds talks with local councillors and officials- 21.01.13

Deputy Prime Minister, Abdussalam Al-Qadi, conversed with Sirte’s local councillors and officials on Monday, including the head of the local transportation and housing department, discussing plans for reconstruction and development and improving local services to residents of Sirte. Foreign companies were identified as having an opportunity to assist with rebuilding infrastructure and the local economy. The deputy PM was accompanied by the Deputy Minister of Industry as well as a number of Deputy Ministers, members of Congress and members of the NTC. Sirte was the home town of the former Dictator and the place that the Gaddafi was finally caught and killed. With Sirte being the capital of Gaddafi’s tribe it was widely considered to have received preferential treatment, both in terms of infrastructure and benefits for the locals, during the 42 year regime of the deceased Dictator. As a result both the town and the people received harsh treatment and little support from other Libyans following Gadaffi’s downfall. The Peace and National Cohesion Conference, which opened in Sirte on Monday, hopes to reciprocate the aims of the 1922 Conference also held in Sirte which united the tribes of Libya; then to fight against the Italian Colonialists and now to rebuild Libya as a whole.

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LIBYABUSINESS WEEKLY

Chinese telecoms firm ZTE to expand Libyan WiMax Network taking connectivity nationwide - 23.01.2013

Deputy Head of ZTE in Libya, Malik Shaban expects to see full national coverage for Libya’s WiMax network by August. Speaking to the Libya Herald at Libya’s seventh annual telecommunication & IT exhibition in Tripoli this week, Shaban confirmed that work was beginning on phase two of a planned upgrade to the existing WiMax network of 346 towers in 18 locations which currently supply 80% of Libya’s internet users, severely overloading the system. The expansion plans which will add 300 additional towers are part of a pre-revolution contract - with state owned Libya Telecom and Technology (LTT) - which has resumed since ZTE returned to Libya in September to conduct repairs on facilities damaged during the 2011 Uprising. However the project will be expanded to address the low penetration of internet in Libya estimated to be around 5%. LTT’s Managing Director, Saad Ksheer, told Libya Herald that it is planning a total of 588 new WiMax towers followed by a programme to replace old towers with up-to-date technology.

Joint Ministerial meeting held to consider future of Al Zawiya Port and Refinery - 19.01.2013

The ministers of Oil & Gas Abdulbari Alarusi, Communications & Transport Abdulgader Ahmed met to discuss the development and expansion of Azzawiah port and refinery to increase its commercial capacity and identify the problems facing the refinery which was affected by local protests in 2012. The refinery located close to Tripoli, has a capacity of 120,000 barrels per day and has been fully operational since November 2011 after pipework was damaged during the Uprising. Prior to the Uprising the NOC has earmarked Al Zawiya (operated by Zawiyah Oil Refining Co. a subsidiary of the NOC) for a $1bn upgrade to maintain output.

Oil Minister Al Aarusi meets with UAE companies at the Abu Dhabi Sustainable Development Summit - 19.01.2013

On the side-lines of the Summit last week which was part of Abu Dhabi Sustainability week 2013, Libya’s Oil and Gas Minister Abdulbari Alarusi met with senior managers from a number of Oil companies in the UAE to discuss cooperation in the Energy sector including Oil & Gas production, renewables and the possibility of Emirati Companies investing in the Libyan energy sector. During his visit Alarusi also took the opportunity to meet with Libyan nationals living in the UAE in the presence of the Libyan ambassador in the UAE, Dr Aref Al Nayed to discuss ideas that could help in the development of the oil and gas industry in Libya.

Energy Industries Council (EIC) delegation received by Libya’s NOC - 21.01.13

Libya’s NOC welcomed a trade mission from the British Energy Industries Council on Monday. A representative of the NOC emphasised the investment opportunities available to British and other foreign companies. The Council represents a large range of the top British oil & gas, petrochemical, power generation, and transmission and distribution companies as well as specialist companies in nuclear industries, renewable energy and natural gas.

Spam. Libya’s lesser known security concern - 22.01.13

An internet solutions company, Libyan Spider, has partnered with Dutch online security firm SpamExperts. Libyan Spider has been one of the fastest growing online businesses in Libya and currently services some 15 thousand clients. Mohamed Ayad, a Director at Libyan Spider, says “SpamExperts Local Cloud has significantly reduced spam reaching our servers and customers’ mailboxes.”

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LIBYABUSINESS WEEKLY

Minister of Oil & Gas met the Chairman of National Company of Oil Wells Drilling and Workover – 21.01.2013

Meeting at the Headquarters of the National Company of Oil Wells Drilling and Workover, - a state-owned subsidiary of the NOC which dominates the field of drilling in Libya - on Monday, Oil Minister Abdulbari Alarusi and the Company’s Chairman discussed the current situation and challenges faced by the company. Calling for a focus on the development of the company’s performance in terms of priorities and alternatives the Minister stressed the importance of supporting the Company’s staff; giving priority of workover rigs to affiliated foreign companies. The Minister stressed the importance of reconsidering the contracts which might have corruption or lack of clarity.

Tunisair announce flights to Sebha - 20.01.13

A Tunisair representative has announced that as of 1st February the airliner will start to operate three flights a week between the Libya city of Sebha and Tunis. He further stated that Tunisair will add another three Tunisian destinations that fly to Misrata increasing the flights from two per week to five. There are currently three flights a day between Libya’s capital Tripoli and Tunisia’s capital Tunis and two per week from Libya’s second city Benghazi.

Libya to become a budget destination? - 23.01.13

Ryanair, one of the original budget airlines still offering some of the cheapest prices available on the market, have set their eyes on Libya. Ryanair are looking at the North African market in general having spoken to officials in Tunisia and Egypt as well as Libya. When asked whether Ryanair were hoping to cater to business or tourism, Ryanair’s head of sales and marketing said “Everybody flies with Ryanair, whether you’re somebody on business or somebody flying for pleasure.”

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IE Consultancy Plus (IE) is a young, dynamic business development agency, supplying market research, representation, advisory and support services to international clients looking to establish or extend their commercial presence in the emerging markets of the new Libya. With offices in Tripoli and London and supported by associates based throughout Libya’s key commercial locations, IE boasts a unique profile founded on the experience and vision of its management team and developed on the collective expertise of its extended network of consultants. For more information on how we can help you to do business in Libya contact us now in either London or Tripoli

LONDON OFFICE15 Bedford Square, London WC1B 3JA United Kingdom

T: +44 20 7193 6404 E: [email protected] Skype: ieconsultancy

TRIPOLI OFFICEBeny al Ahmer Street, Hay al Andalus, Tripoli, Libya

T: +218 (0) 21 711 04 30 E: [email protected] Skype: ieconsultancylibya

Local knowledge gets you a long way in Libya.

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LIBYABUSINESS WEEKLY

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Algerian hostage tragedy prompts tightening of security at Libyan Oil & Gas facilities – 21.01.2013

The deadly attack by Islamist militants on the Amenas gas plant in Algeria – a joint venture between UK major BP and Norwegian firm Statoil with Algeria’s state oil company Sonatrach –in which at least 38 workers died has serious implications for Libya’s Oil & Gas sector which has struggled to encourage International operators to recommit expatriate workers amid on-going security concerns.

In the wake of the Algeria attacks, Libya’s Petroleum Facility Guard (PFG) has increased security at Oil facilities in the West and South of Libya including high value assets in the Ghadames

and Murzuq basins providing air support and ground cover in-cluding 24 hours security patrols inside and outside sites.

For the time being old tensions between Libya and Algeria over resources in the border region particularly natural gas, and newer issues around the presence of members of the Gaddafi family in Algeria, have been put aside while the neighbours cooperate on the serious security issues posed by criminal gangs, smugglers and Al Qaeda linked extremists.

In a statement Libyan Prime Minister Ali Zidan confirmed Libya’s commitment to the trilateral agreement signed between Libya, Algeria and Tunisia this month in Ghadames [Western Libya] say-ing, “We [Libya] confirm our full solidarity with the Algerian people and government, and we reject violent hostile operations against civilians”. Also speaking on the issue Libyan Army Chief Yousef Al Mangoush said, “events in Mali have a reflection on our borders”, adding, “There are intensive efforts to control these borders”.

So far there have been no incidences of terrorist activities or specific threats aimed at Libya’s Oil & Gas facilities or foreign companies operating in Libya, although set in the context of wider security concerns in Libya the recent events in Algeria is likely to have an impact on the confidence of International operators and service companies working in Libya.

A delegation led by General National Congress leader Moham-med Magarief visited a number of Oil & Gas installations to review the situation following last week’s attacks. Despite the severity of the Algerian hostage situation, a senior Libyan oil of-ficial speaking anonymously to the Tripoli Post said “even if the few foreign oil workers decided to leave the country, Libyan oil production levels will not be affected.” Libyan production is cur-rently close to pre-conflict levels of 1.6 million barrels per day.

Given that the majority of International Operators in Libya are yet to recommit a full complement of expatriate staff to Libya due to on-going security concerns in the country, the recovery of Libya’s oil production has been largely a result of the efforts of Libyan engineers and technicians. However the lack of expatriate staff and international service companies has meant that a great deal of routine maintenance and scheduled work has not been con-ducted putting further strain on the industry. The Libyan govern-ment has made security its top priority, and serious progress on this issue is required to change international perceptions.

TRIPOLIBENGHAZI

Zeuitina Oil Terminal

El-Sharara

El-Hamra SIRTEBASIN

GHADAMESBASIN

PELAGIANBASIN

MURZUQBASIN

MisratahMellitah

Ghadames

Al-Wafa

ALGERIA

Oil pipelinesGas pipelines

Page 12: Libya Business Weekly - Issue 2 - 25.01.2013

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Paul Bell

Director

T +44 (0) 208 996 50 72

E [email protected]

Albany Associates

Gable House

18-24 Turnham Green Terrace

London W4 1QP www.albanyassociates.com

Helping you communicate to realise your objectives

Comprehensive Communications

Public Relations and Public Affairs

Media and Journalism Training

Media Regulation and Development

Upcoming Events

UK, London - 05.02.2013

The Middle East Association (MEA) will be holding a semi-nar on doing business in Libya. For more information you can visit the MEA website on: www.the-mea.co.uk

Germany, Frankfurt – 06.02.2013

Conference on risk management in North Africa. Partici-pants will have the opportunity to exchange views and net-work with businessmen with experience in Africa. For more information visit the following website: www.afrikaverein.de

Protecting Libya’s Oil Installations

• Established in 2012 the ‘Organisation for Protection of Oil Installations’Part of the Ministry of Defence is responsible for protecting Libyan Oil & Gas assets.

• It’s force The ‘Petroleum Facilities Guard’ (PFG) responsible for protection of all Oil facilities and assets including field, pipelines, camps, refineries and terminals.

• In 2012 over 10,000 former rebels have signed contracts adding to the existing force of approximately 2.500 (Total force of nearly 13,000).

• Members of the Oil Protection apparatus are Soldiers and receive Salary from the MoD (although funds come from the NOC budget)

• The Authority has 5 regional branches covering the major oil assets each with its own local commander, administration and resources.

• The PFG currently has armed mobile and fixed teams have been deployed.

Feature

Page 13: Libya Business Weekly - Issue 2 - 25.01.2013

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LIBYABUSINESS WEEKLY

Page 11