Libya … a future investment haven?

Lots in the news recently regarding Libya’s agreement to release the foreign medical workers held in the HIV/AIDs scandal, ostensibly partially in return for greater interaction with the EU. While Libya has slowly been working to improve its image and relationships over the past few years, the reality of its petroleum potential & wealth is undisputed. With proven natural gas reserves of slightly more than 53 trillion cubic feet (tcf) and current oil production capacity at 1.6 million barrels per day, Libya is hoping to garner the foreign investment needed to drive up both of these metrics.

But, while the size of Libya’s reserves is significant, its location close to Europe is even more important. Italy, in particular, stands to gain significantly as a transit point for supplies going to the rest of Europe, possibly as a liquefied natural gas hub. It will likely pay to keep an eye on exploration, refining, chemical, and even the tourism sectors in the months/years ahead, as more and more companies and individuals get over the stigma of working/travelling in Libya. That is, of course, not to diminish the challenges offered by an active terrorism threat and underfunded & deteriorating infrastructure, but still the potential for long-term change to an investment haven is intriguing.

This entry was posted on Friday, July 27th, 2007 at 6:36 pm and is filed under Libya.  You can follow any responses to this entry through the RSS 2.0 feed.  Both comments and pings are currently closed. 

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Wildcats & Black Sheep is a personal interest blog dedicated to the identification and evaluation of maverick investment opportunities arising in frontier - and, what some may consider to be, “rogue” or “black sheep” - markets around the world.

Focusing primarily on The New Seven Sisters - the largely state owned petroleum companies from the emerging world that have become key players in the oil & gas industry as identified by Carola Hoyos, Chief Energy Correspondent for The Financial Times - but spanning other nascent opportunities around the globe that may hold potential in the years ahead, Wildcats & Black Sheep is a place for the adventurous to contemplate & evaluate the emerging markets of tomorrow.