Petroleum Law of 1955
Encyclopedia
Libya
's Petroleum Law No. 25 of 1955 was the law of Libya
which authorised the allocation of land to individual oil prospectors, and the drilling of oil well
s. It followed the Minerals Law of 1953, which established a system for obtaining permits to survey (but not drill) for petroleum. Despite the multiple changes of government and legal framework since its enactment, it remained in effect. It does not contain any provisions for natural gas
drilling. In the 2000s, the Libyan government began work on drafting a new petroleum law.
The law established a Petroleum Commission, which made decisions on whether or not to grant concessions. Initial drafts of the law stipulated that provincial governors had the power to appoint members of the commission, and also made final decisions on concessions. However, these powers were eliminated in the final version of the law, in what historian Dirk Vandewalle described as a rare example of the national interest overriding that of the provinces.
Under the law, a contractor working for the National Oil Corporation
is permitted to bring equipment into Libya free of import duties; however, this provision does not apply to contractors working for private oil companies, who are governed by the Administrative Contracts Regulation 2000. Amendments to the law in 1961 and 1965 altered the calculation of royalties. The 1961 amendments in particular meant that independent oil companies paid significantly less in taxes than the major oil companies.
Libya
Libya is an African country in the Maghreb region of North Africa bordered by the Mediterranean Sea to the north, Egypt to the east, Sudan to the southeast, Chad and Niger to the south, and Algeria and Tunisia to the west....
's Petroleum Law No. 25 of 1955 was the law of Libya
Law of Libya
The law of Libya has historically been influenced by Ottoman, French, Italian, and Egyptian sources. Under the Great Socialist People's Libyan Arab Jamahiriya, Libya has moved towards a legal system based on sharia, but with various deviations from it....
which authorised the allocation of land to individual oil prospectors, and the drilling of oil well
Oil well
An oil well is a general term for any boring through the earth's surface that is designed to find and acquire petroleum oil hydrocarbons. Usually some natural gas is produced along with the oil. A well that is designed to produce mainly or only gas may be termed a gas well.-History:The earliest...
s. It followed the Minerals Law of 1953, which established a system for obtaining permits to survey (but not drill) for petroleum. Despite the multiple changes of government and legal framework since its enactment, it remained in effect. It does not contain any provisions for natural gas
Natural gas
Natural gas is a naturally occurring gas mixture consisting primarily of methane, typically with 0–20% higher hydrocarbons . It is found associated with other hydrocarbon fuel, in coal beds, as methane clathrates, and is an important fuel source and a major feedstock for fertilizers.Most natural...
drilling. In the 2000s, the Libyan government began work on drafting a new petroleum law.
The law established a Petroleum Commission, which made decisions on whether or not to grant concessions. Initial drafts of the law stipulated that provincial governors had the power to appoint members of the commission, and also made final decisions on concessions. However, these powers were eliminated in the final version of the law, in what historian Dirk Vandewalle described as a rare example of the national interest overriding that of the provinces.
Under the law, a contractor working for the National Oil Corporation
National Oil Corporation
The National Oil Corporation is the national oil company of Libya. It dominates Libya's oil industry, along with a number of smaller subsidiaries, which combined account for around 70% the country's oil output...
is permitted to bring equipment into Libya free of import duties; however, this provision does not apply to contractors working for private oil companies, who are governed by the Administrative Contracts Regulation 2000. Amendments to the law in 1961 and 1965 altered the calculation of royalties. The 1961 amendments in particular meant that independent oil companies paid significantly less in taxes than the major oil companies.