return to Libya

 June 1, 2007

Outside, the Mediterranean Sea touches the shores of Tripoli, and a late February sun casts an orange glow over Libya's sparkling capital of melding cultures and hospitable people. Inside, at the Corinthia Bab Africa Hotel's conference hall, more than 300 former Esso and Mobil employees have come together for a reunion sponsored by ExxonMobil. As they look at a display of pictures documenting Esso and Mobil's history in Libya, some of them well up.

"The best years of my life were spent working for Esso," says Awad Murabta, who stands before a picture of himself, 30 years younger.

Abdalla Mansu, a former engineer for Mobil Libya agrees. "I remember how well the company treated me, and I'm so happy that those companies are back in Libya," he says. "It's a wonderful occasion for my country."

In the 1960s and '70s, Esso and Mobil were the largest foreign investors and oil and gas producers operating in Libya. At their peak, they produced more than 1 million barrels of oil a day — about 40 percent of the country's total production. The companies trained thousands of Libyan workers in the oil and gas sector. They built schools, medical clinics and a lot of good will. Then, in the 1980s, the companies left Libya due to the changing political climate.

The reunion was held in part to honor the Libyan people who helped make the former Esso and Mobil organizations so successful. Yet it was also a celebration of the future. After more than 20 years away from the country, ExxonMobil has been awarded oil and gas leases by the Libyan government. The company has signed exploration and production sharing agreements with Libya's National Oil Corporation for two offshore contract areas, totaling 5 million acres.

Libya is believed to hold some of the largest oil reserves in Africa, with much of the future exploration potential thought to be offshore. Tapping this potential would be a boon for both ExxonMobil and Libya, which depends heavily on the oil sector. As a result, an "oil and gas renaissance" is sweeping Libya these days, says Tim Cejka, president of ExxonMobil Exploration Company. "We're extraordinarily pleased to be partners again with Libya's National Oil Corporation."

Tarek Hassan-Beck, once a geologist for Esso Libya and recently director of planning for Libya's National Oil Corporation, says, "The emotions you see around you at this party are the result of the legacy of loyalty that remains after a good company comes into a country and treats the local citizens well. Esso and Mobil were such good employers here, and we know the values each company held are also present in ExxonMobil today. And these are the kind of values we treasure."

Libya's OPEC Secretary General Abdalla Salem El-Badri echoes Hassan-Beck's sentiment. In a written statement, El-Badri says, "This step to reach out to its former staff is a manifestation of the thoughtfulness of the company and one of the reasons why ExxonMobil remains prosperous and well-regarded."

Legacy of technology
In recent years, Libya has opened its doors to foreign businesses and tourists. From its history and culture to its deserts and beaches, Libya is a rising star in North Africa, and its oil sector is shining especially brightly. According to Oil & Gas Journal, Libya is believed to hold more than 39 billion barrels of proven oil reserves, making it the world's ninth-largest oil province. Libya's educated populace and proximity to European markets make it a desirable place to do business, says Phil Goss, president of ExxonMobil Libya Limited, a subsidiary of Exxon Mobil Corporation.

By returning to Libya, ExxonMobil is creating a new chapter in its history, Goss explains. "Esso and Mobil were involved in many of the industry's 'firsts' in Libya," he says. "The companies discovered the country's first oil, developed the first commercial field at Zeltan [later renamed Nasser] and built one of the world's first liquefied natural gas plants. We were known as ethical companies that had great technological expertise, extensive personnel development programs and disciplined management approaches. We plan to carry on that legacy."

So far, most of ExxonMobil's business activities in Libya have centered on offshore prospects in the Sirte and Cyrenaica basins in the Mediterranean Sea. Drilling is expected to take place up to 100 miles offshore in waters from 4,000 to 10,000 feet deep.

"The offshore areas we intend to drill are in ultra-deep waters," Goss says. "ExxonMobil is the best in the industry at deepwater production. But that's in the future. At this time, we're still establishing our office, working with local communities and the government, and processing the initial seismic data."

In the early exploration phase, ExxonMobil has completed a two-dimensional seismic data acquisition program in the Cyrenaica basin and plans to conduct more seismic work in the offshore Sirte basin this summer. Mapping 2.5 million acres of the subsurface sea in each area is a massive undertaking, says ExxonMobil's Libya Exploration Supervisor Ian Mitchell.

"It's an immense amount of data to interpret," he says. "Not only are we looking offshore, we're also evaluating old data from our onshore activities to try and get a good geological picture of the whole country in order to assess other potential opportunities. It's very exciting, because Libya's offshore areas are still largely under-explored."

Najeeb Zagaar, superintendent for reservoir engineering at Libya's National Oil Corporation, says ExxonMobil will help fully evaluate previously unexplored areas. "The overall amount of work they've already put into the contract area, and all the expertise utilized and technology available to a giant like ExxonMobil, should set a model for other companies."

He is particularly impressed with how ExxonMobil has pursued its goals while also protecting the environment. Before seismic work was conducted, ExxonMobil engaged a local company to help conduct an environmental impact study. It also collaborated with the local communities, including local fisheries, to establish precautions to protect sea life, while also coordinating plans and activities with the government's Environmental and Antiquities departments.

"ExxonMobil's approach to the environment so far has been exemplary," Zagaar says.

Legacy of people
Just as Esso and Mobil were known for hiring and training Libyans, ExxonMobil is committed to developing a work force made up of mostly Libyan national staff.

"We are in the process of rebuilding our presence, and we have a commitment to do this by using a local work force," Cejka says. "But even though we had nothing on the ground, we had a leg up because of our reputation in providing the very best training. We've been able to attract the best, and we'll continue to do so."

Indeed, when the company placed a hiring advertisement in the local paper last summer, it received more than 1,500 responses to fill just eight positions. All job candidates passed a series of tests designed to measure their qualifications for the positions.

"We made the hiring process fair and equitable," Goss says. "We are setting a standard in the industry. And it's working. We have an extremely committed and dedicated work force."

"The process was very thorough and diplomatic," adds Reda Essaid, deputy general manager of ExxonMobil Libya Limited. Essaid is a former National Oil Corporation employee who has worked 16 years in Libya's oil industry. Even with his experience, he was required to pass a test to demonstrate his qualifications.

"What I'm discovering during my six months with the company is that when managers talk about doing things the 'ExxonMobil way,' what they mean is that everything is done with fairness, discipline and respect for us, the employees. What makes it particularly exciting for me is that I get to work for such a large, well-respected company to further my own country's economic future."

Amal Creui, an ExxonMobil Libya administrative assistant, came back to her country after working in the fashion industry in England. She had intended to stay in that field until she saw the ExxonMobil newspaper ad.

"I'm so glad I applied," Creui says. "Because this is a start-up office, I get to do so many things and use my creativity in so many ways. I'm of a generation that never thought we'd see tourists here, and now I'm working for one of the best companies in the world. It's an amazing opportunity for me and my country."