1.1 Background of the study
Libya is a member of the Organization of Petroleum Exporting Countries (OPEC) and holds the largest proven oil reserves in Africa. Libya has attracted hydrocarbon exploration since 1956, when the first wildcat oil well was drilled onshore in the Sirte Basin. Libya granted multiple concessions to Esso, Mobil, Texas Gulf, and others, resulting in major oil discoveries by 1959. The government dominates Libya's economy through control of oil resources, which account for approximately 95% of export earnings, 75% of government receipts, and over 50% of GDP. The National Oil Corporation was established in 1970. It dominates Libya's oil industry, along with a number of smaller subsidiaries, which combined account for around half of the country's oil output. Figure 1.1the map of Libya describes Gas Pipeline, Oil Pipeline, Oil Field, Liquefied Gas Planet Oil Terminal (Oil Exporting harbor) and Petroleum refining which owned and controlled by National Oil Corporation in Libya.
National Oil Corporation is carrying out exploration and production operations through its own affiliated companies, or in participation with other companies under service contracts or any other kind of petroleum investment agreements. This is in addition to marketing operations of oil and gas, locally and abroad. NOC has its own fully owned companies which carry out exploration, development and production operations, in addition to local and international marketing companies. NOC also has participation agreements with specialized international companies. Such agreements have developed into exploration and production sharing agreements, in accordance with the development of the international oil and gas industry, and international petroleum marketing. The National Oil Corporation of Libya (NOC) is a state-owned company that controls Libya's oil and gas production. The company is the biggest oil producer in Africa. Its mandate was to endeavor to promote the Libyan economy by undertaking development, management and exploitation of oil resources as well as by participating in planning and executing the general oil policy of the state.
In addition, the creation of a state-owned oil company allowed Libya to follow in the footsteps of other oil-producing economies, where control of such a revenue-generating resource lay with the government. Soon after its establishment, NOC signed a joint venture agreement with t