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ZNR UUUUU ZZH
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FM AMEMBASSY TRIPOLI
TO RUEHC/SECSTATE WASHDC 4262
INFO RUCPDOC/DEPT OF COMMERCE WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEHTU/AMEMBASSY TUNIS 0709
RUEHEG/AMEMBASSY CAIRO 1352
RUEHAS/AMEMBASSY ALGIERS 0848
RUEHRB/AMEMBASSY RABAT 0791
RUEHVT/AMEMBASSY VALLETTA 0371
RUEHTRO/AMEMBASSY TRIPOLI 4784
RUEHCL/AMCONSUL CASABLANCA 0011
RUEHAM/AMEMBASSY AMMAN 0085
RUEHLO/AMEMBASSY LONDON 0969
RUEHFR/AMEMBASSY PARIS 0656

UNCLAS SECTION 01 OF 05 TRIPOLI 000976 
 
C O R R E C T E D COPY - ADDING ADDRESSEES 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/MAG (NARDI, HAYES, PATTERSON) 
STATE PASS USTR (BURKHEAD) AND USAID (MCCLOUD) 
USDOC FOR ITA/MAC/ONE (NATHAN MASON), ADVOCACY CTR (REITZA), AND 
CLDP (TEJTEL AND MCMANUS) 
CASABLANCA FOR FCS (ORTIZ) 
AMMAN FOR ESTH HUB (BHALLA) 
CAIRO FOR FINANCIAL ATTACHE (SEVERENS) 
LONDON AND PARIS FOR NEA WATCHER 
 
E.O. 12958: N/A 
TAGS: ECON EFIN ETRD EINV EIND EPET ENRG PGOV LY
SUBJECT: LIBYA COMMERCIAL ROUND-UP FOR NOVEMBER 2008 
 
TRIPOLI 00000976  001.2 OF 005 
 
 
CONSULTING 
 
¶1. (SBU) Economics officer and senior commercial officer met on 
November 30 with a representative of Bearing Point, who was in 
Tripoli discussing future contracts for the company with the 
Libyan government. Bearing Point did a Basel Core Principles 
assessment for Libya a few years ago, and now is interested in 
helping the Central Bank implement some of the recommendations 
previously made, including work on the regulatory regime for 
banking supervision, and anti-money laundering. Bearing Point is 
also discussing with the Privatization Board a study tour of 
U.S. regulators for the power industry. Bearing Point is also in 
discussions with the Economic Development Board about Bearing 
Point's assistance in coordinating between the various economic 
actors carrying out programs and assisting in the development of 
SME's through the business incubator program. 
 
OIL & GAS 
 
¶2. (U) Energy City Libya Masterplan: Bahrain's Gulf Finance 
House launched the $5 billion Energy City Libya project, which 
will develop the country as a regional hub for the energy 
sector. The project will cover 6 square kilometers on the shore 
of Sabratha, a city 70km west of Tripoli and is intended to 
serve as a crossroads between the European, African and Arab 
markets. The project involves the construction of a centerpiece 
surrounded by specialized business clusters including an 
environmental and renewable energy advisory centre, an area 
dedicated to oil and gas producers, an area for shipping and 
trading companies, an area for energy service industries, and an 
area for downstream and infrastructure industries. The Economic 
and Social Fund of Libya is an investor in the project and will 
have a consultative role in the project. [MEED, 11/9/2008] 
 
¶3. (U) Canadian Firm Verenex Submits Final Appraisal Report for 
Libya's Area 47: The report recommends that the field be 
declared commercial as a first step in advancing a gross 50,000 
barrels of oil per day development project in the southern part 
of Area 47. Under the Exploration and Production Sharing 
Agreement (EPSA), a declaration of commerciality by the Area 
Management Committee would clear the way to establish a Joint 
Operating Company with the National Oil Corporation as a 50% 
partner to finalize the development plan and to execute the 
project. [Petroleum Africa, 11/13/2008] 
 
¶4. (U) Geology of Southern Libya Symposium & Exhibition: The 
event was officially sponsored by the National Oil Corporation 
and marked the 50th anniversary of the Earth Science Society of 
Libya. The symposium and exhibition was held during 17 - 20 
November. Geosciences, seismic, geophysical, and exploration and 
production services companies, as well as consulting and 
training organizations from UK, USA, Denmark, Spain, Canada and 
Libya participated. [libyaonline.com, 11/15/2008] 
 
¶5. (U) Geowave Endeavour sets production record for any seismic 
vessel: Norwegian Wavefield is undertaking BP's offshore seismic 
data collection with the Geowave Endeavour vessel.  The vessel 
acquired 2,991 sail miles during the month of October while 
working offshore Libya for BP; this is believed to be a new 
production record for any seismic vessel. The contract 
incorporates the industry's largest ever onboard processing 
project. This is BP's largest 3D seismic survey ever acquired in 
terms of area. [Hart Energy Publishing, 11/21/ 2008] 
 
¶6. (U) Libya-focused Verenex Energy opens data rooms to 
potential buyers: The Canadian company, focused on Libya, 
announced in September it was considering selling options but 
had not specifically said it was for sale. The data rooms will 
remain open until at least mid-December, and the company aims to 
make a decision in the first quarter of 2009.Verenex Energy Inc. 
The Libyan National Oil Corporation has approved a list of large 
companies qualified to view the confidential technical data on 
the assets in the Ghadames Basin. Verenex acquired rights to 
Area 47 in 2005 and has drilled 16 exploration and appraisal 
wells, and released an estimate that the area contains 2.15 
billion barrels of oil equivalent. [oilweek.com, 11/27/2208] 
 
 
TRIPOLI 00000976  002.2 OF 005 
 
 
¶7. (U) Pertamina in talks to acquire Verenex's Libya oil field: 
Indonesian oil company PT Pertamina is in talks with Verenex 
Energy Inc. to buy the Canada-based firm's stakes in an oil 
field in the Ghadames Basin, Libya. Pertamina already has 
exploration rights in two blocks in Libya. It is still unclear 
if Pertamina intends to enter the block alone or with partners. 
[The Jakarta Post, 11/29/2008] 
 
¶8. (U) OiLibya Begins Pouring Oil in Ethiopia: After 60 years of 
presence in the country, as of November 14, Shell Ethiopia has 
totally moved out of the Ethiopian market, after Libya Oil 
Holding Ltd (OiLibya) finalized the purchase and sale agreement. 
Shell signed a purchase sale and agreement with OiLibya, which 
gives the latter 100% ownership of Shell's downstream oil 
products marketing business share in Ethiopia. Its 142 employees 
have been retained. The last months of Shell Ethiopia's life 
were characterized by a serious confrontation it had with the 
company's labor union over service benefit claims the employees 
demanded. OiLibya has already pledged a 15% salary increment for 
the employees as of January 2009. [allafrica.com, 11/25/2208] 
 
REGIONAL ISSUES 
 
¶9. (U) Liberia gets 30 Tons of Rice from Libya: The government 
of Libya has provided about 30 tons of rice to Liberia. The 
Charge d'Affaires of the Libyan People's Bureau in Liberia, 
Aymen T.A. Shah, said the donation was Libya's way of 
identifying with Liberia in the wake of global food crisis; in 
response, Deputy Foreign Minister for Administration, Johnson N. 
Gwaikolo, who received the rice on behalf of the Liberian 
government, commended the government and people of Libya for the 
donation. During the year, Libya has also donated generators, 
tractors, and several medical supplies to Liberia. 
[libyaonline.com, 11/3/2008] 
 
¶10. (U) Libya, Belarus Sign Cooperation Agreements: During an 
official visit by Muammar al-Qadhafi to Belarus, Libya and 
Belarus signed four agreements related to the economic, judicial 
and cultural sectors. The signing ceremony took place on 
November 3rd. The agreements include a convention on avoiding 
double taxation, a protocol on cooperation between judicial 
branches, a memorandum of understanding between the two 
countries' standardization agencies and an agreement on media 
cooperation. Muammar al-Qadhafi arrived in Minsk after visiting 
Moscow. [Tripoli Post, 11/4/2008] 
 
¶11. (U) Memorandum of Understanding Signed between Libya and the 
Ukraine:  Ukraine and Libya signed Convention for Avoidance of 
Double Taxation and Prevention of Fiscal Evasion with respect to 
Taxation on Income. Also, a Memorandum of Understanding in the 
area of Metrology and Certification was signed. The memorandums 
were signed in the presence of Ukrainian President Viktor 
Yushchenko and Muammar al-Qadhafi, on a state visit to Kyiv. 
[ljbc, 11/4/2008] 
 
¶12. (U) Libya offers employment opportunities to Sri Lankans: A 
12- member Libyan labor delegation, led by Libyan Manpowerr 
Minister, Matough Mohamed Matough, made a four-day visit to Sri 
Lanka. Libya and Sri Lanka entered into a Memorandum of 
Understanding regarding health, hospitality, and education. The 
Libyan Minister indicated their urgent requirements of doctors, 
nurses, and paramedics in the Libyan hospitals. Libya also 
indicated its desire to set up a hotel management school in Sri 
Lanka, and to have engineering, physics, biology, and chemistry 
lecturers from Sri Lanka in its universities. Sri Lanka 
President has also approved the setting up of a Sri Lanka High 
Commission in Libya. Libya has come forward to recruit 
immediately 1,000 doctors and 1,000 nurses from Sri Lanka. 
[Asian Tribune, 11/6/2008] 
 
¶13. (U) New Islamic University to Open in Kampala: The 
Libyan-based World Islamic Call Society is to open a university 
in Uganda by the end of this year. The society's 
secretary-general, Dr. Muhammad Shariff, said the university, 
which started in Tripoli, Libya in 1975 had opened up branches 
in Chad, Syria and England. The university would initially 
operate from the training centre at the Old Kampala Mosque, 
 
TRIPOLI 00000976  003.2 OF 005 
 
 
before relocating to a permanent place. [New Vision Kampala, 
11/11/2008] 
 
¶14. (U) EU-Libya talks start: Negotiations on an EU-Libya 
Framework Agreement, covering political, social, economic, 
commercial and cultural relations with Libya, opened in Brussels 
with EU External Relations Commissioner Benita Ferrero-Waldner 
and representatives of the current French EU presidency 
representing Europe. On the Libyan side of the table will be 
Secretary for European Affairs Abdulati Elobeidi and Mohamed 
Tahar Siala, Deputy Secretary at the General People Committee 
for International Cooperation. To date Libya remains the only 
Mediterranean country with no official relations with the 
European bloc. Earlier this year Libya had declined an 
invitation to join the Union for the Mediterranean proposed by 
the EU's French Presidency. [eubusiness.com, 11/12/2008] 
 
CONSTRUCTION 
 
¶15.  (U) Sovereign Hospitality Holdings to develop urban resort 
in Tripoli with InterContinental Hotels Group: Kuwaiti Sovereign 
Hospitality Holdings announced it will develop an extensive 
resort in Tripoli, Libya, to be managed by Holiday Inn, an 
InterContinental Hotels Group owned brand. The development will 
feature the 4 star Holiday Inn Tripoli Hotel, as well as real 
estate opportunities, and is due to open in 2011. Sovereign 
Hospitality Holdings will invest around $130 million in this 
project. [libyaninvestment.com, 11/11/2008] 
 
¶16. (U) Thai Firm Wangdee Engineering ready for $40 million 
project in Libya: Thai Wangdee Engineering and Construction 
Company has entered the North African market by securing a 
contract to build housing units worth $40 million in the south 
of Libya. The contract is part of a Libyan government public 
housing programme in which 25,000 housing units will be built 
nationwide. Rawas for Constructions and Maintenance Company is 
the main contractor for the Libyan government's rural area 
development project, and Wangdee is a subcontractor for 1,612 
one-storey row houses in the southern city of Brack, about 700 
kilometers south of Tripoli. [Bangkok Post, 11/22/2008] 
 
¶17. (U) South Korea's Kolon wins $86 million deal in Libya: The 
Kolon Engineering & Construction Company, a South Korean 
builder, signed a preliminary $86 million deal to build a sewage 
treatment plant in Tripoli. The plant is expected to be 
completed 30 months after its launch. [Business in Asia Today, 
11/24/2008] 
 
¶18. (U) Libya sets up joint venture with Egypt's Sewedy: Two 
Libya's state-owned firms have set up a $25 million joint 
venture with Egypt's El Sewedy Cables, to produce high voltage 
cables for Libya's domestic market. The joint venture has been 
named El Mushtaraka Cables Manufacturing. El Sewedy owns 55 
percent, Manufacturing Investment Development Company Holding 
owns 40 percent and Electricity Industries Company, owns 5 
percent of the JV. El Sewedy is one of the biggest cable 
manufacturers in the Middle East. [Reuters, 27/11/2008] 
 
¶19. (U) China Railway Construction Corporation starts $1.7 
billion project in Libya: The railway project consists of a 453 
kilometer railway line which will link Tripoli with Sirte. The 
railway line is part of a major Libyan plan to build a railway 
network linking it to other African states, including 
neighboring Maghreb countries. Libya is one of China's largest 
trading partners in Africa, with two-way trade estimated by 
Libyan officials at more than $2.0 billion during last year. 
[Reuters, 11/28/2008] 
 
¶20. (U) Libya Enlists British Architects for Conflict Museum: 
The London-based Metropolitan Workshop, a collective of British 
architects, has won a closed competition to design the conflict 
museum. The proposed design takes the form of a sequence of 
origami-like, zigzag forms that somehow manage to conjure an 
image of some ultra-modern Bedouin tent hunkered down in the 
desert dunes of North Africa. [dexigner.com, 11/30/2008] 
 
IT/TELECOM 
 
TRIPOLI 00000976  004.2 OF 005 
 
 
 
¶21. (U) Atrexx Targets the North African Oil and Gas Market: 
German company Atrexx, a provider of telecommunication and 
broadcast services, has confirmed the conclusion of major 
contracts for the provision of satellite communications to 
European suppliers in the Libyan oil and gas industry. The 
communications will be provided to remote exploration sites and 
to drilling teams based in the region. Atrexx has been working 
in the Libyan oil and gas market since the embargo was lifted. 
[Atrexx, 11/3/2008] 
 
¶22. (U) North Africa to See Enterprise Voice & Data: Tunisia 
Telecom Integrator and Alcatel-Lucent have joined forces to 
supply enterprise voice and data solutions in the North African 
nations of Libya and Tunisia. The agreement will showcase the 
two firms' common skills and technological abilities and broaden 
their presence in North Africa. Alcatel-Lucent and TTE will 
offer complete and secure communication solutions while evolving 
the network infrastructure in Tunis and Libya. [TmcNET, 
11/4/2008] 
 
¶23. (U) Summit in Bahrain to Address Information Technology 
Priorities: The event aims to discuss Information Technology 
(IT) Strategies to develop the productivity of the Oil & Gas 
sector, discuss challenges facing this industry in the Arab 
region and establish a strategic platform for the IT executives 
in the Oil, Gas and Industrial sector. The OT Summit took place 
November 18 and 19, and hosted the heads of IT sectors in the 
region's top oil producing countries.[otsummit.com, 11/17/2008] 
 
¶24. (U) ThurayaIP Rolled Out in Libyan Government and Corporate 
Sectors: Thuraya, a UAE Satellite Telecommunications Company, 
signed a major commercial deal with the  General Post and 
Telecommunications Company (GPTC), according to which a large 
number of ThurayaIP terminals will be rolled out in most areas 
within Libya before the end of this year. Thuraya has recently 
begun installing ThurayaIP terminals for key user segments 
including government agencies, oil and gas companies, business 
corporate, media and international organizations operating in 
the country. [thuraya.com, 11/18/2008] 
 
¶25. (U) MicroWorld Forms Retail Partnership with CIS Libya: 
MicroWord, the advanced AntiVirus and Content Security Solution 
developer, announced its retail partnership with CIS Libya, a 
provider of IT vendors with an established client base of 
corporate companies like Libyan Telecom Company, General 
Electricity Company of Libya, and Shell Libyan Branch. The 
partnership aims to distribute MicroWorld's security products in 
Libya. The partnership will enable both companies to work 
together in helping users secure and manage their information 
assets. [emailwire.com, 11/24/2008] 
 
¶26. (U) Power plant builder Technopromexport and Libya to set up 
energy JV: Russia's state-controlled power plant builder 
Technopromexport and the Libyan African Investment Portfolio 
have agreed on a joint venture to build power plants in Africa. 
The joint venture, Laptechno-Power, will build and operate power 
facilities in seven African countries: Libya, Uganda, Ghana, 
Algeria, Egypt, Yemen and Namibia. The construction of electric 
power facilities will be financed by the Libyan African 
Investment Portfolio, which will manage $6.73 billion in funds 
to implement the projects in the seven countries. The first 
projects will be the construction of a 1,250-km [777-mile] 
electric transmission line with a capacity of 400 kiloWatts in 
Libya and a 300 MegaWatts hydro power plant on the Blue Nile 
River in Uganda. [RIA Novosti, 11/20/2008] 
 
BANKING 
 
¶27. (U) Egypt's Beltone Financial opens office in Libya: 
Egypt-based investment bank Beltone Financial has expanded into 
Libya by partnering with the Libyan Economic and Social 
Development Fund to open an office in Tripoli. "Beltone 
Financial is providing a comprehensive suite of services in 
Tripoli including securities brokerage, asset management, 
investment, corporate restructuring and advisory services," the 
bank said in a statement. Beltone was established in 2002, and 
 
TRIPOLI 00000976  005.2 OF 005 
 
 
is present in Cairo, Riyadh, Jeddah, Dubai, Qatar, London and 
New York. The investment bank manages about 30 billion pounds of 
assets. [Reuters, 8/11/2008] 
 
¶28. (U) First Gulf Bank teams up with Libya to launch first 
joint lender: Abu Dhabi-based lender First Gulf Bank (FGB) and 
Libya's Economic and Social Development Fund (ESDF) have 
launched First Gulf Libyan Bank (FGLB) operations in Tripoli, 
Libya. The inauguration was held under the patronage of the 
Libyan Prime Ministry. Equally owned by ESDF and FGB and fully 
managed by FGB, FGLB will initially offer a range of corporate 
products to businesses in Libya. FGLB will expand its range of 
services to address the emerging needs of the country. [Gulf 
News, 13/11/2008] 
 
PRESS 
 
¶29. (U) AFP launches bureau in Libya: Agence France-Presse 
formally opened a bureau in Tripoli on November 22, the first 
global news agency in Libya. The new bureau, directly linked to 
AFP's Middle East regional headquarters in Nicosia, Cyprus, will 
be staffed by two journalists covering Libyan news in Arabic and 
French, plus a photographer. The news agency was previously 
represented in Tripoli by a local freelance. [libyaonline.com, 
23/11/2008] 
 
TRANSPORTATION 
 
¶30. (U) The Oil Carrier "Aisha" included to the Fleet of Public 
Marine Transport Company: The modern oil carrier "Aisha" built 
by Samsung Company, was enlisted to the commercial operation of 
the Libyan national company for public marine transport. Its 
capacity reaches 100,000 barrels. Resources from the Libyan 
marine transport company mentioned that the enlisting of this 
carrier to the company fleet follows the company's plan to 
become the biggest fleet of oil carriers in the Arab and 
Mediterranean Sea. The plan is under the supervision of Hannibal 
al-Qadhafi. [libyaninvestment.com, 23/11/2008] 
GODFREYJT