What is oil and gas law?
Oil and gas law which is also called petroleum law is the branch of natural resources law. As the name indicates it deals with oil, petroleum, gas, and related products. It deals with production, transportation, exploration, processing, export, import, marketing, and selling of petroleum and petroleum-derived products. This law deals with three main areas of business known as downstream, upstream, and midstream. International oil and gas law regulations are available but along with that different countries have established and modified their petroleum laws to regulate oil and gas-related internal and external matters.
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A brief history of Libyan oil and gas law
Petroleum law which is law number 25 of the Libyan constitution of 1955 is the rulebook of all the petroleum-related business and work in Libya. Even though petroleum law was established in 1955, some modifications were done in it according to the needs and welfare of the state in different years (1961, 1965, and 1970). According to the law of 1955, several concessions were given to foreign companies that wanted to explore, invest and drill oil and gas reserves in Libya. But after Libya became a worldwide exporter of petroleum, the urge to use natural resources for the welfare of the states lead to modification in the law of 1955 which encouraged nationalization of oil and gas resources. In 1971, law no. 115 was established that announced the nationalization of all the property and interests of two British oil companies. Later in 1973 law, no 66 was issued that announced that 51% of all the funds, interests, rights, and activities of all the companies mentioned in the law would be nationalized which included 45 concession contracts with several oil companies working in Libya in that time. Later total funds and interests of several oil companies were nationalized under laws issued later.
Some major points of Libyan oil and gas law
Under Libyan oil and gas law, all the oil and gas reserves discovered in the country of Libya are the property of the Libyan government. In 1979, a national oil corporation was established which deals with matters related to oil and gas resources. This law allows allocation of land for drilling but a permit is required from the corporation. The Ministry of petroleum issues licenses to foreign companies who want to work in Libya and under this law, the petroleum commission holds the authority to give, cancel and renew licenses and contracts. Oil and gas law also address the matters related to taxes, fee, penalties, royalty rates, transportation and oil refining related facilities. Under this law, all the extracted oil and gas should be measured and data should be recorded. Furthermore, special government officials have the authority to inspect petroleum extraction facilities. If anyone wants to do any business related to petroleum products or wants to have an oil production license, several top oil and gas firms of Libya are available that can familiarize the person with all the details and requirements.
Libyan oil and gas law demands licensing and registration of companies and people who want to work in the petroleum industry. Many legal requirements have to be fulfilled with which the Libyan law firms can help.