THE location is far to the southwest of Tripoli, the capital city of Libya. It is closer to the borders with Tunisia and Algiers. This is Ghadames, the city that has become a magnet for many world-class oil companies. Companies from all corners of the world—including Medco Energi Internasional—are leaning on the stepping-stones there. In the rich Bay of Ghadames, which has much oil and gas potential, every day many rigs drill for oil there.