1. Tamoil: Libya’s European oil Strategy. Past. Present. Future?
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2. Overview Brief Resource History of Libya From Eni to Tamoil
Tamoil: A European Business?
The Future of Tamoil?

3. Brief Resource History of Libya
Discovery of oil 1959
Proximity to Europe; direct oil routes (vs Arab Suez Canal, 1967 M.E. war)
Low sulphur content of Libyan crude oil; Eur. Regulations
Italian connection; Imperialism ( ) and partnership with Eni
1972: NOC-Eni partnership (spread costs and losses)
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4. From Eni to Tamoil
Italian connection likely influenced Gadhafi’s decision to enter Europe through Italian markets. Italy relied on Libyan oil for 25% of fuel needs
1988: Formation of Tamoil through shell company
Libya Investment Authority (sovereign fund) establishes Oilinvest as Dutch-based shell firm
Purchase of retail networks in Italy, along with refineries
1990’s-2003: Expansion into Switzerland, Netherlands, Germany and Spain
Significant strategies: European refinery ownership (Hamburg, Collombey, Italy) allowed for faster transport of Libyan oil (crude)
Relocation of Tamoil Espagna from Madrid to port town; Barcelona
Quicker oil delivery and reliance through backup route to increase European dependence on Libyan oil
Sources: Go back to map?

5. From Eni to Tamoil Cont
Focus on downstream sector (not oil extraction)
Supply and refining (deals with BP for lubricants and oil rather than cash)
Marketing and retail network (gas stations), both of which increase awareness of Tamoil as a brand
Libya vs other sources of crude oil to prevent own Libyan dependence (Civil War and disrupted oil routes)
Retail networks across Europe, but still Italian focus (prestige of reverse-imperialism); Italy main entry-point for oil, convenient retail network
Little focus on retailing in Spain= Greater interest in Barcelona and oil routes
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6. Tamoil: A European Business?
European image vs Libyan ownership
Dutch shell firm put distance between Gadhaffi (image of dictator) and Tamoil
Lack of info on Libyan connection (Tamoil website)
Need to balance Europeanism with Libyan oversight. Tamoil European based but Libyans selected for key management positions in both Tamoil and shell company Oilinvest BV
Result of distant ownership mixed
Tamoil became deeply embedded in European economy (ref 20% of Swiss oil supply, diplomatic incident and threats of cutting supply)
Able to continue running outside of UN sanctions (link with Gadhafi not strong enough)
Sirous Ammar: Director of Tamoil refinery, Collombey, Switzerland (fired)
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7. Tamoil: A European Business? Cont
However, Tamoil not entirely independent from Libya
Disrupted Libyan oil routes meant Tamoil forced to bite into reserve stocks
Deals with BP, Shell, cancelled due to Gadhafi’s treatment of protesters (Court Case in Germany)
Public pressure led to Swiss authorities closing loophole allowing Tamoil to transfer assets unchecked
Too much independence from Gadhafi to preserve European image. Tamoil able to support NTC, fire Libyan managers (though some defected)
Sources:

8. The Future of Tamoil?
Final years of Gadhafi’s reign saw focus on African region
Formation of Tamoil East Africa to expand retail networks across Kenya, Uganda for brand recognition, awareness of Libya’s ability to do business
With pressure on NTC to unite and rebuild country, a few possible outcomes:
1) NTC attempts to restart Gadhafi’s deals in Africa (Ugandan pipeline, deal with Chinese), while encouraging foreign investors back into country
2) NTC focuses only on Libya-investor relations (India, China)
3) The selling of Tamoil East Africa for cash, with greater focus on joint ventures through NOC

9. Conclusions
Tamoil diversified Libyan investments and was an important instrument of Gaddafi’s economic policies, yet still managed to retain a degree of aloofness from Libya and a European image
However, Tamoil was not immune from the effects of Libyan unrest
The end of Gaddafi’s reign means that Tamoil will have a clean, legitimate image, and can be used in the long run to diversify Libyan investments and expand African presence
However, pressure on NTC for increased cash flow may lead to sale of Tamoil, meaning less diversification and spread of financial risk (Tamraz)

10. Sources
Interview conducted with Dr. Alaxandre J. Vautravers, head of History and Security programs at Webster University Geneva,September 14th, 2011
Interview conducted with Dr. Ted Bikin-kita , professor of African Studies at Webster University, Geneva. Interview conducted January 24th 2012 at Webster University, Geneva
2008. Libya ‘to pull Swiss bank assets’. Available online at:
2008. Statement from Mr. Isam Zanati,CEO of Oilinvest. Available online at:
2011. History of Eni’s Presence in Libya. Available online at:
2011. Libyan Sanctions and the Netherlands: part 2. Available online at:
Arab News Libya: Business As Usual, But What About Tamoil? Available online at:
Choudhury, Uttara High stakes, and opportunities for India in post-Gaddafi Libya. Available online at:

11. Questions?