CAPITAL: Tripoli

MONETARY UNIT: Dinar

REFINING CAPACITY: 348,400 b/cd

PRODUCTION: 1.3 million b/d

OIL/CONDENSATE RESERVES: 29.5 billion bbl

NATURAL GAS RESERVES: 46.4 tcf

Libya, reversing its earlier position, turned over two citizens accused in the 1988 bombing of a PanAm jet over Scotland. Their trial was to get under way in early 2000 in the Netherlands.

The United Nations moved to suspend economic sanctions against Libya, but the US fought the effort on a number of grounds. It urged waiting to see if Libya made good on its promise to cooperate in the investigation and trial, compensate victims, and renounce terrorism.

Britain in late 1999 was sending an ambassador to Libya with the intent of restoring full diplomatic relations after nearly 16 years, but the US was not ready to do so.

South Africa signaled its willingness to import crude oil from Libya and said several South African companies were negotiating to participate in petrochemical projects in Libya.

Agip North Africa BV signed final commercial documents with National Oil Corp. for a $5.5 billion gas, oil, and condensate project that was to involve Sirte basin and Libyan offshore fields.

The project involved a combined 1.8 billion boe of reserves on Block NC41 in the Mediterranean and Sirte basin Block NC169. Production was to start in late 2003.

Platform C in 180 m of water on Block NC41 would feed gas and condensate to 34-in. and 10-in. pipelines to a 10 billion cu m/year gas processing plant to be built on the coast at Melitah, midway between Sabratha and Zuara.

Agip was to lay 30-in. and 16-in. pipelines to the Melitah plant from Block NC169 about 550 km southwest of Tripoli. The pipelines would facilitate commercial development of numerous oil and gas discoveries along its right-of-way.

Eighty percent of Melitah`s output was to be exported through a 600-km, 32-in. subsea export pipeline to be laid to Sicily from a compressor station at Melitah.

Agip expected its share of output from the NC41 and NC169 developments to total 200,000 boed.

Agip already had net production of 80,000 b/d of oil in Libya from Bu-Attifel field in the Sirte basin and Bouri offshore fields. It was a partner in Block NC174 Elephant field, operated by Lasmo plc in the Murzuk basin 800 km south of Tripoli. Elephant was expected to start up in 2001 and reach a peak of 150,000 b/d of oil.

Repsol found oil close to El Sharara field on Block NC115 in the Murzuk basin. The M-1 new-pool wildcat flowed 2,500 b/d of 43° gravity oil on test. Partner OMV said the well`s output could reach 8,000 b/d using standard pumping techniques. It put reserves at 100-200 million bbl. El Sharara field was at 150,000 b/d increasing to 200,000 b/d by early 2000.

Late in 1999, TotalFina, Repsol, OMV, and Saga signed to explore the 4,290 sq mile M4 Block in the Murzuk basin Block NC115. TotalFina had also been a partner since 1997 on blocks NC186 and 187, on which major seismic work was conducted.

In the Sirte basin in northern Libya, TotalFina, with a 75% share, led a group developing Mabruk field, which produced up to 18,000 b/d.

Operators kept 7-10 land rigs busy for most of 1999, and NOC planned to award a large number of additional exploration blocks.