TABLE 9 
 
LIBYA: 1988 AVERAGE DAILY PRODUCTION OF NATURAL GAS 
 
Company, plant, location 
Production—i ,000-gallons (i2.month average) 
per day 
 
LP.gas mix Raw NGL mix 
Other 
Oasis Oil Co. of Libya Inc. 
 
 
Bahi, Concession 32 
— — 
160.0 
Dahra, Concession 32 
— — 
11.0 
Defa, Concession 59 and 71 
— — 
210.0 
Waha, Concession 59W 
— — 
170.0 
Occidental of Libya Inc. 
 
 
103A, Sirte Basin, Petroleum Zone II 
— 666.0 
— 
103D, Sirte Basin, Petroleum Zone II 
— 375.0 
— 
Socialist People's Libyan Arab Jamahirya, Marsa Brega 
 37.8 4,536.0 
— 
Total 
 37.8 5,577.0 
551.0 
Source: Oil and Gas Journal, July 11, 1988. 
 
 
  NORTH AFRICA MINERALS YEARBOOK—1988from proposed oil-for-debt
swap
agreements in 1988 because of falling crude oil prices and warnings by the
stateowned Reserve Bank of India that a loss of more than 15% on crude sales
could not be tolerated. Libya agreed to resume oil deliveries to Ghana after
a 5-year hiatus following Ghana's failure to meet payments for the crude
in 1983. Libya agreed to reschedule the oil debts without interest, but no
agreement on the timing of the new shipments was made. Uganda received $6
million in petroleum products from Libya in 1988. The products were shipped
from Libya to Dar es Salaam in Tanzania and then by rail to Uganda. Libya
negotiated an agreement in November with Malta to renew oil supplies in 1989.
The $38 million in petroleum products consisted of 191 ,400 barrels of liquefied
petroleum gas (LPG), 525,000 barrels of fuel oil for power stations, and
525,000 barrels of fuel oil for industry. Malta was an important transportation
and shipping center for Libya. Malta's Sea Services, a leading supply ship
operation, was responsible for the towing of the Scarabeo 4 offshore oil
rig from Malta to the Libyan offshore Bouri Oilfield. 
 
Commodity Review 
 
 Metals.—Iron and Steel.—The Misurata iron and steel
plant failed
to start up during 1988 as planned. The $6 billion plant, 130 kilometers
east of Tripoli, was to be the largest industrial enterprise in Libya. The
delay in 1988 makes it several years behind schedule. Problems with power
supply and financing were two of the main delaying factors in 1988. The Misurata
iron and steel plant's phase 1 commercial production, with a designed annual
capacity of 1,324,000 tons of liquid steel, was rescheduled to begin officially
in September 1989. The plant's 480-megawatt power station, contracted to
Hyundai Engineering & Construction Co. of the Republic of Korea,
was
expected to be completed in early 1989. TWo of the power station's six generators

 
110 
were undergoing tests in late 1988 and will be used to power the directreduction
plant. The first iron pellets from Brazil's Cia. Vale do Rio Doce were to
arrive in March 1989. The large volumes of gas to be used to reduce the iron
pellets will be supplied by Libya from domestic production. 
 
 Industrial Minerals.—Cement.—Libya had a mill capacity
of 6.5
million metric tons of cement per year and a clinker capacity of 6.4 million
metric tons per year. 
 
 Mineral Fuels.—Natural Gas.—An agreement was signed
during the
year among Libya, Algeria, and Tunisia for the laying of a gas pipeline from
Algeria to Libya through Tunisia. The proposed pipeline would carry an estimated
90 million cubic meters of Algerian gas. 
 
 Petroleum.—Exploration.—A series of accords were signed
during
the year between Libya and Tunisia for joint exploration of the Gulf of Gabes
oil reserves. Agreement was also reached between the two countries on the
development of a section of the Continental Shelf once claimed by Tunisia
but awarded to Libya by an International Court of Justice ruling in December

1985. Libya gained approximately 
3,367 square kilometers of seabed with 
hydrocarbon potential. 
 North African Geophysical Exploration Co. (Nageco) had three seismic crews
doing onshore surveys during the year. NOC owned 5 1 % of the venture; the
remainder was owned by Western Geophysical Co. of Canada. 
 
 Production.—The African Petroleum Producers' Association (APPA)
was
formed in January 1987 and consisted of eight African oil exporting countries
(Algeria, Angola, Benin, Cameroon, Congo, Gabon, Libya, and Nigeria). Of
the APPA members, only Nigeria produced more oil than Libya in 1988. 
 The most notable event of the year for Libyan oil production was the inauguration
of the first offshore field. The Bouri offshore oilfield had a phase 1 development
cost of $1 .5 billion and was 93 kilometers northwest of Tripoli in the Gulf
of Gabes. The field was 3 kilometers wide by 20 meters long and was covered
by a water depth of 558 meters. The field was jointly developed by NOC and
Italy's Agip-North Africa Middle East after its discovery in 1976. Production
commenced in August 1988 at 8,000 bbl/d and was to be increased to 50,000
bbl/d by yearend. The Bouri