Oil and Gas Sector Reform was introduced by the Libyan government as a part of their economic reform program. Oil and gas was one of the leading sector in Libya, so reform in this sector was very important for the Libyan government. Although, initially the government had to face many challenges, but later, it was able to implement the reform successfully.
This paper will describe about the process and aftermath of the oil and gas reform in Libya. Oil and Gas Sector Reform in Libya had been adopted by the government to improve the productivity and efficiency of the hydrocarbon industry. Oil and gas sector had a very important role in the country’s economic growth.
There were many restrictions on the entry to the Libyan oil and gas sector for which the foreign investors were not coming. So, the government introduced reform in the oil and gas sector.
A new petroleum law had been introduced by the Libyan government in the first stage of reform. Several changes had been made in the National Oil Corporation to ease the entry for the foreign traders.
Negotiation regarding contracts were allowed to be done on an individual basis and some special incentives were provided for the foreign investors.
The government of Libya encouraged market competition in the energy, that is, oil and gas, sector. Domestic private enterprises were also enticed to enter into the sector so that the industrial structure could be modernized.
Several attempts were made by the government to improve the labors’ skill and education. With the help of the private sectors the Libyan government arranged several training programs for the labor.
Effects of Oil and Gas Sector Reform:
Through reform, the Libyan government was able to bring a huge amount of foreign investment in this sector. In 2005, the United Kingdom exported a large amount of industrial equipments worth 210.6 million pounds to Libya which was a big boost for the oil and gas sector.
In 2006, 95% of the Libya’s export revenue came from the oil and gas sector.
The government was able to move forward its hydrocarbon industry rapidly and expanded the service of the energy sector across the whole country.
Libya became one of the main oil and gas supply zone of North Africa.
Last Updated on : 26th June 2013