Interview with the Chairman of the Operator management committee of eni gas libya

Interview with the Chairman of the Operator’s Management Committee of Eni Gas – Libya

NOC Libya 03-16-2007

Eni Gas, one of the Eni group of companies in contract with NOC under an EPSA Agreement, is responsible for implementing and operating the Western Libya Gas project, a huge project in Libya for the production and utilization of natural gas, which was launched by the Leader, Colonel Moammar Al-Quaddafi on 7^th October 2004. Production reached its peak during 2006 after accomplishing all the phases of the project.

In order to shed light on the strength of such a project, we had the following conversation with Eng. Fouad Krekshi, Chairman of the Operator’s Management Committee of Eni Gas – Libya. He began as follows:

The Western Libya Gas Project is the most important project implemented in Libya for Natural Gas Development and utilization.

Through this project, Libya’s production of natural gas has doubled. Furthermore, Libya is now connected directly with the European markets through a submarine gas pipeline, thus entering a new era for marketing its products. Previously tankers were the only means available to export natural gas after being liquefied.

The Project mainly targets the increasing requirements of the domestic market which have resulted from replacing hydrocarbon by products with natural gas for power generation at all power stations, due to the advantages of natural gas use and being environmentally friendly. The Project also aims to guarantee a place in the international markets, which witnesses aggressive competition between the gas exporting countries.

As regards attaining targeted production rates, Mr. Krekshi stated that the realized rates exceeded the targeted amounts by 15%. Daily production rates reached 1150 million cubic feet of natural gas and 100,000 barrels of oil & gas condensate, i.e. 320,000 equivalent barrels of oil.

The daily average exported during last winter through the marine pipeline reached 1000 million cubic feet per day, which represents 120% of the targeted amount to be exported. We benefited from the increase in demand for gas from the Italian market, as well as the price rise which was positively reflected on the income resulting from gas sales agreements.

I would also like to point out that currently Eni Gas is supplying Al-Rwes Power Station (in Nalut), with its requirements of natural gas, estimated at 1000 million cubic feet per day. The power stations of Al-Harsha and West Tripoli will also be supplied with natural gas once the Mellitah-Tripoli pipeline is completed. This being all within the State’s policy framework to replace hydrocarbon products with natural gas, in order to have the hydrocarbon products exported.

As regards concerns about the Project’s impact on the environment, Mr. Krekshi assured that the Mellitah Plant was designed according to the highest international standards and an independent consultant body has been entrusted with supervising the surrounding area.