Franchise Agreement in Libya for Crude Oil
Since 1965, Marquard & Bahls has owned a stake in Bosco Middle East Corp., which obtains a franchise agreement in Libya in 1968. The idea behind this is to have own sources of crude oil available for contract processing.
Over the past few months Bosco Middle East Corp., in which Marquard & Bahls holds a stake, has sunk two boreholes in Libya. In the second borehole, just as in the first, traces of oil are found in the wildcat. The initial probes bode well for a speedy find.
Sourcing crude oil from Libya would be beneficial for Marquard & Bahls both in terms of transport, as it would circumvent the need to ship through the crisis-prone Suez Canal, and the fact that Libyan crude oil is of prime quality with a top yield of light products.