LIBYA BUSINESS UPDATE

23 – February - 2011

Dear Reader,

Due to current events in Libya and

throughout the Arab world, MEC MEC International Ltd.
International would like to offer our latest Granville House
update on business affairs in the country. 132 Sloane Street
London
SW1X 9AX
This latest edition of our Libya Business
Tel: 020 7951 4826
Update offers news on BP, Repsol, and
Fax: 020 7951 4800
other major companies operating in the
North African country as well as two E-mail:
commentary pieces on the current
inquiries@meconsult.co.uk
situation.
www.meconsult.co.uk

It also looks at employee evacuations

undertaken by the Russians, who have
been working on railway construction,
If you know of anyone who
and the Poles who have a vested
would like to receive our
interested in the energy sector in the
newsletter please let me know.
country.

As always, if you have any news you think

should be included in our next newsletter,
Sophie Beard
or any feedback or comments, please do Editor
not hesitate to contact me.
 LIBYA BUSINESS
Europe Shares Slip On Uncertainty
Over Libya Unrest
21/02/2011
European shares slipped on Monday on
mounting concern over political stability
in oil producers after escalating unrest in
Libya over the weekend, prompting
investors to cut exposure to risk.
Read More
OMV Withdraws Some Libya Staff,
Operations Stable
21/02/2011
Austrian oil and gas group OMV said on
Monday none of its operations in Libya
had been affected by the unrest there
but added it was withdrawing expatriate
staff from the country.
Read More
PGNiG Pulls Out Of Libya
22/02/2011
Polish gas monopolist PGNiG has
announced that it is to evacuate its
employees from Libya. PGNiG was
granted a concession by the Libyan
government to look for natural gas in the
Murzuq region, where reserves are
estimated at 100 billion square meters
and production could begin as early as
2015.
Read More
UPDATE
23 – February - 2011
Oil Giant Statoil Evacuates Staff
From Libya
21/02/2011
Norwegian energy giant Statoil on
Monday said it had begun evacuating
its non-Libyan staff working in the
country. Statoil holds stakes in two
Libyan oil fields, Mabruk and Murzuq.
Read More
Boustead Suspends Operations in
Libya, Evacuates Staff
21/02/2011
Boustead Singapore, which provides
engineering services and develops
industrial facilities, said on Monday it has
suspended operations in Libya and
started evacuating its non-Libyan staff
from the country. Boustead's joint
venture partner in Libya will take over
control of a township project in the
country, it said.
Read More
Repsol Of Spain Says It Is
Operating Normally in Libya
21/02/2011
Repsol, which has exploration and
production activities in Libya, has been
present in Libya since the 1970s. Repsol
had net production in Libya of 34,777
barrels a day in 2009.
Read More
 LIBYA BUSINESS UPDATE
23 – February - 2011

GLOBAL MARKETS – Libya Turmoil Turkish Business in Libya Faces

Prompts Oil Surge, Hit Equities Security Threat
21/02/2011 20/02/2011

Oil prices charged to fresh 2-1/2 year Turkish companies, mainly construction
highs on Monday as traders reacted to firms, operating in Libya are worried
increasing violence in major producer after political turmoil and violence
Libya, which fed investor fears about rocks the country and building sites are
rising inflation and unsettled other attacked, depots burned and
markets. Globally, equities were lower equipment destroyed over the
but U.S. markets were closed for a weekend. Officials from many
holiday. companies say they are observing the
Read More developments closely and have
already moved hundreds of workers to
safer regions.
Russians Pulled Out Of Rebellious Read More
Libya
22/02/2011
Oil Giant BP Suspends Operations
As the bloody violence in Libya spread After Violent Protests
Monday, Russia began to pull out 22/02/2011
specialists working on high-profile
investment projects in the North BP has halted operations in the North
African country. Russian Railways said African country just four years after it
in a statement on its web site that it returned from a 30-year hiatus. The oil
was bringing home all its 204 engineers giant signed a deal worth at least $900
working on a rail link between million US (£550 million) in 2007 to
Benghazi and Sirte. explore Libya.
Read More Read More

S.Korean Construction Site Eni Says Libyan Production Not

Attacked in Libya Affected By Turmoil
21/02/2011 21/02/2011

Hundreds of armed Libyans attacked a
South Korean-run construction site in
Tripoli, sparking a clash in which at
least 18 foreigners were hurt.
Read More
Italian power giant Eni S.p.A (E)
Tuesday said its operations and
facilities in Libya haven't been
affected by the political unrest in the
country and production continues as
normal.
Read More
 LIBYA BUSINESS UPDATE
23 – February - 2011

COMMENTARY SECTION

We would like to thank Africa News for contributing the following

commentary piece on the current situation in Libya. This piece was
originally published on the Africa News Website on February 22 2011.

LIBYA: Benghazi Airport Destroyed

By John A. Afful Jnr.

Oil-rich country Libya's Benghazi airport runways have been damaged in the
carnage that has rapt that part of the North African country halting landing of air
planes, Egypt's Foreign Minister Ahmed Aboul Gheit said on Tuesday. Protests
have swept through the country and it is likely to continue for days.

Speaking at a news conference, he said "Regarding east of Libya, the Benghazi

airport runways have been destroyed. It is not possible for Egyptair flights or
any other flights to land in that airport."

Meanwhile, witnesses in the Libyan capital Tripoli had reported "massacres" in

certain neighbourhoods after the state channel announced that security forces
were assaulting "dens of terrorists".

Libyan television has dismissed as "lies" the alleged massacre of protesters

after embattled leader Muammar Gaddafi spoke publicly for the first time since
the revolt began.

The announcement came as international outrage over Libyan security forces'

brutal crackdown deepened, with the UN Security Council to meet later on
Tuesday at the urging of Libyan diplomats who have quit in protest at Gaddafi’s
regime.

"They say there are massacres in several cities, towns and neighbourhoods of
Libya. We must fight against these rumours and lies which are part of
psychological warfare," wrote Al-Jamahiriya Two state television on a red ticker.

Reiterating this information "aims to destroy your morale, your stability and your
riches".
 LIBYA BUSINESS UPDATE
23 – February - 2011

Gaddafi, 68, appeared on Libya television late on Monday night to scotch

"malicious rumours" that he had abandoned the oil-rich North African nation in
the face of protests that flared a week ago in the east of the country.

Government buildings on fire

"I am going to meet with the youth in Green Square" in downtown Tripoli, said
Gaddafi in what state television called a live broadcast from outside the
strongman's home.

"It's just to prove that I am in Tripoli and not in Venezuela and to deny television
reports, those dogs," he said as he stood under a silver umbrella while about to
step into a car. Rain lashed Tripoli on Monday evening.

Despite the brief 22-second appearance, Gaddafi’s grip on Libya appeared

increasingly shaky as loyalists quit and fighter pilots defected after being
ordered to fire on demonstrators.

The uprising has spread to the capital, with gunfire rattling Tripoli, where
protesters attacked police stations and the offices of the state broadcaster –
Gaddafi’s mouthpiece - and set government buildings ablaze.

Human rights groups say the Libyan government's crackdown has killed
between 200 and 400. Residents of two districts in Tripoli said by telephone
there had been "a massacre," with gunmen "firing indiscriminately" in Tajura
district.
 LIBYA BUSINESS UPDATE
23 – February - 2011

We would like to thank Care2 for contributing the following commentary

piece on the current situation in Libya. The article was originally
published at http://www.care2.com/causes/

Gaddafi's Grip on Libya Weakens

By Kristina Chew

Colonel Muammar Gaddafi appeared on Libyan state TV on Tuesday night

and said that he was in Tripoli, dismissing reports that he had left the
country for Venezuela. Gaddafi has reportedly ordered fighter jets to attack
parts of the capital, according to the Guardian and, according to
the BBC, witnesses have reported that warplanes and helicopters have
been firing on protesters. But with the eastern cities of al-Bayda and
Benghazi reportedly now under the control of protesters, Gaddafi's control of
Libya appears to be weakening.

The BBC described Gaddafi as speaking while 'seated in the passenger

seat of an old, white vehicle and [holding] up an umbrella to shield himself
from the rain' and saying:

"I am satisfied, because I was speaking in front of the youth in the Green
Square tonight, but the rain came praise to God, it is a good omen," he
said.

"I want to clarify for them that I am in Tripoli not in Venezuela. Do not believe
these channels - they are dogs. Good-bye."

After speaking to Gaddafi on Monday, United Nations Secretary-General

Ban Ki-moon announced that the UN Security Council will meet in a closed
session to discuss the situation in Libya. And Libya's own diplomats at the
UN have called for 'international intervention to stop the government's
violent action against street demonstrations in their homeland.'

Earlier on Monday, the Guardian reported that two Libyan fighter jets and
two civilian helicopters had landed in Malta. Military officials say that the
pilots---Libyan air force colonels---have asked for asylum and told Maltese
officials that they had been ordered to bomb protesters.
 LIBYA BUSINESS UPDATE
23 – February - 2011

The recent unrest in North Africa has already been felt throughout the world,
and not only in the form of oil prices being at their highest since the financial
crisis of 2008. The New York Times reports that Europeans have recently
been seeking to cultivate 'close contacts with Tripoli' to stem what is more
and more seen as 'an unmanageable flood of migrants.' The recent revolts
have led to an even greater influx of migrants to Italy and Malta. The EU has
denounced the Libya's 'brutal suppression' of the protesters, but concerns
remain about the issue of migrants:

Italy’s foreign minister, Franco Frattini, warned that the crisis in Libya could
set off an “unimaginable” movement of population because of the large
number of non-Libyan citizens in the country, which has been a magnet for
Africans looking for jobs and possibly a passage to Europe.

“Those who spoke of hundreds of thousands” of people crossing into Europe

“are not exaggerating,” Mr. Frattini said. “We have already seen what
happened in Tunisia.” More than 3,000 Tunisians have landed on the Italian
island of Lampedusa, just off Sicily, in recent days, leading the Italian
government to declare a humanitarian emergency.

Libya, notes the New York Times, holds 'considerable leverage over the
European Union' because, indeed, of the migration issue. Last week, Libya
told the 27-nation EU that it would 'reconsider its cooperation on illegal
migration if the Europeans continued to encourage pro-democracy protests
in the country, according to Hungary, which holds the union’s rotating
presidency.' Brussels, the Guardian reports, has 'rejected what some
ministers called "blackmail" from Tripoli.'

(90% of the migrants entering Europe illegally due so via Greece's border
with Turkey, the BBC reported in October of last year.)

European nations have sent planes and ferries to Libya to evacuate their
citizens (including employees of international oil companies). The
Guardian reports that thousands of Turkish workers are awaiting evacuation
from Libya and have taken refuge inside a soccer stadium in eastern
Benghazi after hearing gunfire and explosions.