Laws, Regulations and Sanctions: Foreign Oil and Gas
Type
E-journal
Date
5 Feb 2013
Jurisdiction
Libya
Taxonomy
General Commercial Law, Companies & Corporate Bodies, Oil & Petroleum
Copyright
LexisNexis
Relevant company
Clyde & Co
Analysis
The Libyan Ministry of Oil has recently announced that they are contemplating improving the terms of the exploration and production contracts for IOCs by way of a new EPSA-V (Exploration and Production Sharing Agreement) to replace the tougher EPSA-IV in anticipation of a new licensing round that could take place towards the end of 2013.
Brief Overview of Oil and Gas Corporate Structures Available in Libya
Foreign companies and investors wishing to do business in Libya must first set up and register a local entity. For a new foreign entity to establish itself in the Libyan market, it must first either obtain an Investment License by registering at Companies House, or it must obtain a Commercial License from the Ministry of Economy.
There are no special licensing requirements which apply to the oil and gas sector, and so the more common approach of foreign companies is to obtain a Commercial License in order to operate through either a joint venture with a Libyan partner or a branch office.
Joint Venture Company