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LIBYA - The Oilinvest Background.

Oilinvest as a group emerged in the 1980s after Libya's acquisition of the two formerly Lebanese-controlled companies, Tamoil and Gatoil. Now Tamoil is the biggest unit in the group and handles most of the 350,000 b/d of crude oils which Oilinvest lifts from Libya for processing in Europe (see OMT).

Tamoil, moving into African markets after it has consolidated its position in Europe, runs the group's petrol stations in Egypt. It is seeking to have similar stations in Algeria, Tunisia and Morocco in the north, as well as in South Africa and other non-Arab countries on the continent.

Libya is to build a 150,000 b/d crude oil pipeline from Tobruk to Egypt's Mediterranean processing zone in Alexandria. Officials from both countries have said this would lead to the building of a 150,000 b/d refinery in Alexandria (see OMT).

Oilinvest International NV consists of about 40 companies operating an integrated network in Europe. It was established in 1988 with a share capital of $450m held equally by LAFB, Lafico and NOC. It has two fully-owned wings: Oilinvest (Netherlands) BV which heads a number of companies, and Oilinvest (Curacao) NV which leads another number of companies.

(The structure was changed in late September 1993 so that the holding company for the group was limited to Oilinvest Netherlands BV. But since the UN lifted its sanctions in April 1999, the system has been reverted to the original one, whereby the units are led by two holding companies).

Libyan Integration With Europe & Other Markets: In the early 1990s Oilinvest Chairman Mohammed Abduljawad summarised the group's strategy as follows: "Oilinvest is establishing itself through joint ventures in different markets hoping to set an example as to how such an integration can lead to better and fair co-existence among different countries".

This has led to Libyan integration with several European oil markets. One set of companies has concentrated on Italy, Switzerland, Spain, France and Hungary. Another group, relying on the Holborn refinery in Germany and other Libyan sources of products, serve the markets of Northern Europe, mainly including Germany and Britain. In turn, each of these firms is affiliated with service companies.
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Publication:APS Review Downstream Trends
Geographic Code:6LIBY
Date:Jul 16, 2001
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