TRIPOLI, Libya, Feb. 27 /PRNewswire/ -- According to Phoenicia Group
(http://www.phoenicia.ly), the leading U.S.-Libyan diversified business
group, which is a strategic partner to key U.S. and international companies
in Libya, Libya is suffering from an acute shortage of oil drilling and
work over rigs, significantly delaying exploration programs of oil majors
prospecting in the North African country.
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Symptomatic of the wider global glut in rig availability, U.S.
newcomers ExxonMobil, Chevron, Occidental Petroleum, and the former Oasis
Group (Marathon Oil, ConocoPhillips, and Amerada Hess) are finding
themselves struggling to secure rigs on schedule for their expanding
operations in the country, from exploring new blocks to revamping existing
unproductive fields.
The demand is translating into high rates for contracted rigs, said
Ryad Sunusi, interim President & CEO of the Phoenicia Group, during a
conference call with investors, analysts, and the media from Tripoli,
elaborating:
"Libya needs at least 40 rigs for the next 10 years to support IOC
exploration programs, and this represents a great opportunity for the
Libyan private sector to get involved, in forming JVs with overseas
drilling and work over contractors, as outlined by GPC Decree 443/2006," he
noted.
"We intend to capitalize on the opportunities and partner with
international oil services companies to meet the demand, and laud the
Libyan government's stance in its strong support and confidence in the
Libyan private sector's capabilities of supporting the national oil
sector."
Former GPC Secretary Shukri Ghanem, who currently heads the country's
National Oil Corporation, is a strong supporter of Libyan private sector
involvement in the oil services sector and relayed that message to a
gathering of Libyan businessmen at the Mahari Hotel last year.
Libya has enacted legislation requiring international oil services
companies wishing to do business in Libya do so through JVs with a Libyan
partner according to GPC Decision 443/2006, which was passed last November
by the General People's Committee, Libya's executive decision-making body.
Joint Ventures, which take the form of Joint Stock or "Mushtirika"
companies, formerly required a 51% to 49% ownership structure in favor of
the Libyan partner and majority Libyan board, but was amended to allow
foreign partners to maintain a maximum 65% stake and majority of the board,
effectively giving control to the foreign partner. The Libyan partner,
however, legally must have a minimum 35% stake in any Joint Stock Company.
The move has major oil services companies like Schlumberger,
Halliburton, Weatherford and others scrambling to conform to the new
decree, and newcomers keen to pinpoint Libyan partners.
Sunusi, a prominent Libyan businessman and expert, is staking his
group's future potential on oil services, tourism, and construction,
sectors outlined for growth by the National Economic Strategy overseen by
the National Economic Development Board, and has established oil services
companies Al-Marooj, Oea, and Akakus to tap the market, by establishing JVs
with U.S. and international oil services companies, particularly drilling
and work over services companies.
"We see tremendous opportunity in oil services, and are confident that
with support of the government, and in time, the Libyan private sector can
achieve most oil services on its own, we are in serious talks with major
oil services companies, and judging by the number of proposals we are
receiving, the interest is phenomenal."
The Phoenicia Group, a widely touted poster child of Libyan private
sector achievement, has, since its inception in 1999, experienced rapid
expansion in the oil & gas, construction, tourism, telecommunications,
health, services, and agribusiness sectors, making it the leading Libyan
private business and consultancy group; and sponsoring the spin-off of the
Libyan-American Business Council in 2004 to promote U.S.-Libyan trade and
business exchange.
About Phoenicia Group Libya, LLC
Phoenicia Group, a U.S.-Libyan professional business services company,
establishes and advises on interoperability issues in the Libyan Market
with technology, and devises, researches and implements market entry and
risk management strategies for U.S. companies wishing to establish a
foothold for commerce in Libya. For more information, visit
http://www.phoenicia.ly.
This release was issued on behalf of the above organization by
Send2Press(R), a unit of Neotrope(R). http://www.Send2Press.com
SOURCE Phoenicia Group
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