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The other area the prime minister underscored was involving global companies to manufacture spare parts for equipment used in the oil sector by forming joint ventures with Libyan private companies. These joint ventures, he observed, could come up in the Misrata Free Zone
Libyan Prime Minister Abdel Hamid Dbeibah has urged opening the hydrocarbon sector to the Libyan private sector to enhance efficiency and competitiveness. This he revealed during his meeting with Acting Minister of Oil and Gas, Khalifa Abdel-Sadiq, recently. The oil and gas sector of Libya is monopolised by foreign companies.
The other area the prime minister underscored was involving global companies to manufacture spare parts for equipment used in the oil sector by forming joint ventures with Libyan private companies. These joint ventures, he observed, could come up in the Misrata Free Zone.
The Acting Minister briefed Dbeibah on the development and investment projects approved within the sector plan to increase production and activate international partnerships.
The conflict in Libya has profoundly, and adversely, affected the private sector, increasing firms’ production and distribution costs, exacerbating investment risk, making access to foreign labour more difficult, and reducing access to finance. Informal and illegal economic activities and rent-seeking have also increased. Nonetheless, Libya’s private sector shows resilience, but the country needs to create conditions conducive to the expansion of the private sector market as well as limit the role of the state-owned enterprises and expand the legal, regulatory, and economic conditions for private enterprises to flourish.
The oil sector accounts for more than 70% of the GDP of Libya and 95% of its exports. There are two main oil companies. The sector is dominated by two state-owned companies Oil Corporations and Arabian Gulf Oil Company (Agoco), a wholly owned subsidiary of NOC. In marketing, foreign oil companies are involved through joint ventures and other agreements. Although these agreements were signed by the former regime, it is still not abrogated, mostly because of the fluid situation in the Northern African country.
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Recently, the Libyan authorities have been working on reforming the oil sector by pressing into service local companies, particularly from the small sector. The Libyan administration is also keen to involve them in manufacturing equipment used for oil drilling, their spare parts, and other related activities locally thereby creating local investment and employment.
