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NATIONAL OIL CORPORATION LIBYA

PUBLIC BID ROUND IV    07-10-2007

Introduction: The National Oil Corporation ("NOC"), in accordance with its long term objectives to increase gas production capacity, has decided to offer in this particular public bid round a selection of the prospective gas Areas throughout the prolific geologic basins of Libya.

INVITATION TO BID

NOC invites all international E & P companies to participate in the fourth bidding round (the “Bidding Process”) for the award of certain Exploration and Production Sharing Agreements (“EPSA”) covering the following areas:

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Technical Presentations

There will be two presentations to be held in Tripoli and London on the contractual framework, a technical summary of the individual areas and blocks and the Bidding Process terms and conditions for this fourth round followed by a discussion.

The first presentation will be held in Tripoli on 8/8/2007.

The second presentation will be held in London on 15/8/2007. Time and venue will be announced shortly.

Qualification

All companies and/or consortia interested to participate in the Bidding Process shall be required to address an Application Letter to NOC and submit certain qualification documents not later than 22/8/2007 ("Closing Date"). NOC will study and evaluate all applications according to its Guidelines and procedures for public Bidding and will inform, in writing, all qualified companies and consortia (the “Bidders”) not later than 30/8/2007.

Qualification Requirements

All participating companies and consortium members must be actively undertaking exploration and production activities.

The following requirement must be met:

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1) With respect to Operator / Consortium operator

a) reserves statement certified by one of the international consultants listed below attesting that the applicant's share of proven (developed and undeveloped) reserves are not less than 2 trillion standard cubic feet (Scf) of natural gas .

b) that the applicant average share of total daily gas production for the year ending 2006, whether or not directly operated by it, must not be less than 200 million Scf per day; and

[ Certifications above must be certified by a Public Notary ]

c) that the audited financial statements for the last three budget years show clearly that certain financial ratios such as Operating expenditures to Revenues, current Assets to current Liability and Debt to Equity reflect to the satisfaction of NOC a sound and well being of the applicant's business.

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List of international consultants are:

1. Ryder Scott Company

2. Gaffney, Cline & Associates

3. DeGolyer and MacNaughton

4. Roxar Limited

5. Beicip – Franlab

6. Platt, Sparks & Associates

7. Canadian Petroleum Engineering Inc.

8. PHH Petroleum Consultants Ltd.

9. IHS Energy .

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2) With respect to Investor

Applicants who can not meet the requirements in 1a) and 1b) above but can satisfactorily meet the requirement in 1c) above can only participate as investors by joining another applicant who can satisfactorily meet the requirement under 1) above.

Qualified Investor, will have to join a qualified Operator or a consortium during the application period in order to be able to continue as a participant in the Bid Process. Consortia formed after Closing Date will not be accepted.

Note: For the purpose of the current Bidding Process, NOC will apply reserves classifications as stipulated in regulation no.8 Appendix 3 of the Petroleum Law 25 of 1955.

Data Room

A Data Room will be organized at NOC in Tripoli during the period 9/9/2007 to 23/9/2007. Access to the Data Room will be limited to Qualified Bidders including approved consortia members.

During the Data Room session, Bidders will receive, for each contract area of their interest, a complete Bid Package containing: (i) Instructions and Bidding Procedures (ii) technical data (iii) the EPSA model (iv) commitment Letter (v) form of Bid Guaranty. Data Room access fees will be required to be paid.

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Clarification

Any clarification or comments related to the Bid Package delivered in the data room must be submitted in writing to NOC during the period 10/9 to 3/10/2007. NOC will study all clarifications or comments and will include those accepted comments in the Bid Package as relevant and circulate same to all qualified participants.

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Opening of Bids and the announcement of the Winner

Bidders are required to submit their Bids in a sealed envelop, delivered by hand, between 08:00 am and 10:00 am on 9/12/2007 (the “Bid Opening Date”) at the Mehari Hotel in Tripoli. A Bid opening ceremony will be conducted in public and in the presence of the legal representatives of the Bidders on the Bid Opening Date. Except for a single Bidder or in case of a draw, the winning Bidders will be announced at the end of the session.

For enquiries and further information, please contact:

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NATIONAL OIL CORPORATION

MEMBER-in- charge of - INVESTMENT and JV follow-up

Telephone : +218 21 362 0284

: +218 21 333 1930

Fax : +218 21 362 0284

Time Schedule