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LIBYA - Chad Oil Pipeline To Cameroon.

A 1,080-km pipeline is to be build from southern Chad's Doba Basin to an Atlantic terminal of Kribi on the coast of Cameroon for export. To be completed in 2003, this will pump crude oil to the terminal. The Doba field will have 300 well to produce 225,000 b/d. Total field development and pipeline/terminal costs have been estimated at $4 bn.

The project is for a consortium led by ExxonMobil. The other partners are Chevron and Petronas of Malaysia. With the World Bank having provided support for the project, ABN Amro and Credit Agricole Indosuez in June 2001 completed arrangements for a $600m financing deal.

The Logistics: NOC has all the logistics it needs to preserve and expand its market shares for crude oil, petroleum products and petrochemicals. It owns and runs an elaborate system of pipelines for crude oil, products and the gathering of associated gases.

Libya's oilfields are connected to Mediterranean terminals by an extensive network of pipelines. The main crude oil pipelines are: Sarir to Marsa El Hariga, 318 miles; Messla to Ras Lanuf, 298 miles; Waha to Es Sider, 267 miles; Hammada El Hamra to Zawiya, 236 miles; Amal to Ras Lanuf, 170 miles; Intisar to Zueitina, about 132 miles; and Nasser (Zelten) to Marsa El Brega, 107 miles. After the nationalisation of the oil industry in the early 1970s, all the pipelines in Libya became fully owned by NOC. Companies which retained E&P equity were allowed to operate their pipelines but only on NOC's behalf.

NOC is to have a 622 km crude oil pipeline built from Tobruk to Alexandria, Egypt, with a capacity of 150,000 b/d. This is under an agreement signed in July 1997 by then Egyptian Oil Minister Hamdi Al Banbi and Libyan Energy Secretary Abdullah Salem Al Badri. It was agreed that about 127 km (75 miles) would be in Libyan territory and 495 km (310 miles) in Egypt. Minister Banbi then said the pipeline project would lead to the construction of a new refinery in Alexandria which would have a capacity of 150,000 b/d. He said the project would be handled by the Egyptian firm Petrojet and Libyan companies.

(When Egyptian President Mubarak visited Libya in June 1997, it was announced that the two countries were considering eight joint industrial projects worth $650m: four steel factories, two fertiliser plants, a sugar-beet factory and filleting factory. During Mubarak's visit, Egyptian officials also signed a preliminary accord for an Arab free trade zone).

From 1981 to 1990, NOC built gas pipelines with a total capacity of 10 BCM/y, consisting of 10 big lines for associated gas and five smaller ones for non-associated gas. They include a 670-km pipeline with a capacity of 4.1 MCM/day running along the northern coast inaugurated in September 1989, connecting the Marsa El Brega terminal in the east to the town of Khoms in the west.

The latter pipeline supplies gas to large industries, including a steel complex at Misurata, cement plants at Zelten, power stations at Libda and Khoms, and water desalination plants along the coast. The pipeline is being extended to the west of the country to meet rapidly growing needs there.
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Publication:APS Review Oil Market Trends
Date:Jul 16, 2001
Words:538
Previous Article:LIBYA - Marketing & Prices.
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