LIBYA - Marketing.

Libya's main markets for crude oil and products are Italy, Germany, Spain, France, Austria, Greece, Britain, Switzerland, the UK, India, China and South Korea. Exports to the US were resumed in 2004 after the lifting of American sanctions.

Libya's main export grade is es-Sider (36-37[degrees] API), a blend of crudes produced by Waha Oil Co. (a NOC JV with US firms). Other export grades include Bu Attifel (41[degrees]), Brega (40[degrees]), Sirtica (40[degrees]), and Sarir (38[degrees]). The crude oils are priced on monthly basis and pegged to Dated Brent.

Over 85% of crude exports are sold on term basis. NOC's biggest term customers for crudes are Agip (which usually takes between 220,000-240,000 b/d), Repsol (taking over 200,000 b/d), OMV (100,000 b/d), and Tupras of Turkey (60,000-70,000 b/d). Other term clients include API of Italy, Cepsa of Spain, Total, BASF of Germany, Nova and DEP of Greece, BP and Shell.

NOC supplies gasoline and other fuels to Zimbabwe and other African countries whose regimes are allied to Col. Qadhafi. To this category of countries, Libyan fuel prices are discounted. The Libyan Arab Foreign Investment Bank gives these countries credits to cover their purchases from NOC.

Spot sales have been cut considerably since the beginning of 1993, when NOC stopped letting es-Sider be traded freely. Spot sales now involve a few shipments per month. Spot sales are partly bound for Asia.

It is not yet clear how the sale of a majority in Oilinvest has affected NOC's crude oil supplies to this company and Tamoil. Until last month, Oilinvest used to take up to 350,000 b/d of crude from NOC. Each of Oilinvest's units in Europe has been pricing fuels in the local currency in competition with other retailers.

Petrochemicals are handled by Chempetrol International. Exports of petroleum products from Libya average about 45,000 b/d and include LPG. The products, now sold mostly to African countries, include fuel oil, gasoil and jet kerosine.