Decree No. (551) of 1989 on organising the Oil Secretariat

General People’s Committee

Decree No. (551) of 1989

on organising the Oil Secretariat

The General People’s Committee,

Upon review of:

• Petroleum Law No. (25) of 1955 and amendments thereto;

• Law No. (55) of 1976 on the civil service and amendments thereto;

• Law No. (15) of 1981 on the regulation of salaries for national employees of the Great Socialist People’s Libyan Arab Jamahiriya;

• General Secretariat of the General People’s Congress Decision No. (10) of 1979 on the reorganization of the National Oil Corporation;

• General People’s Congress Decision No. (2) of 1989 on the reorganization of the People’s Committees;

• General People’s Committee Decree issued on 14/06/1978 establishing the executive agency for the project to plan and build two new residential cities in Brega and Ra’s Lanuf;

• General People’s Committee Decree No. (158) of 1986 on the distribution of the comptencies of the Oil Secretariat;

• General People’s Committee Decree No. (751) of 1987 on the reorganization of the Secretariat of the Treasury;

• The proceedings of the eighth ordinary meeting of the General People’s Committee for 1989 and based on the submission of the Secretary of the People’s Committee for Petroleum in Letter No. 45/89 dated 17 Dhu al-Qaada 1398 FDP, corresponding to 20/06/1989 AD;

• The conclusions of the committee of secretaries formed in the eighth ordinary meeting of the General People’s Committee for 1989;

has decreed:

Article (1)

The People’s Committee for Petroleum shall have competence to oversee, monitor, and control all matters related to the use of petroleum resources, within the framework of the general policy of the state and in accordance with the resolutions of the Basic People’s Congresses. Included in such competencies shall be preparation of the transitional plan in the oil and petrochemical industries, monitoring the implementation thereof upon approval. The Committee may, in doing so, undertake the following:

1. Propose executive policy for the field of the oil and petrochemical industries, prepare draft sector plans in these two areas in cooperation with the competent bodies, taking into consideration the general policy of the state and in accordance with the resolutions of the Basic People’s Congresses, and propose review of the transitional plan for the sector as circumstances arise or conditions require.
2. Propose the best methods for achieving optimum income from petroleum resources and undertake the procedures required to implement such.
3. Determine the prices of crude oil and gas, monitor international variables that govern production operations and marketing of oil, gas, and related products.
4. Establish technical monitoring of petroleum operations in oil fields and ports and the neritic zone, to ensure the preservation of oil resources and the observation of sound technical rules and methods followed in the oil industries.
5. Confirm the quantities of crude oil, gas, and the related products produced and exported.
6. Monitor the latest scientific methods on enhanced recovery and select those suitable to the nature of the oil reservoirs in the Great Jamahiriya, in coordination with the competent entities at the National Oil Corporation.
7. Review and audit oil companies and the like that are subject to Petroleum Law No. 25/1955 and the relevant oil regulations issued pursuant thereto.
8. Participate in Arab and international oil organizations and congresses and monitor the agreements concluded with the Great Jamahiriya concerning the petroleum sector, in coordination with the People’s Office for Foreign Communication and International Cooperation.
9. Prepare plans on developing and qualifying national elements working in the oil sector, including programs and plans to Libyanize jobs and monitor the implementation thereof once approved.
10. Conduct studies and comparisons among the various petroleum resource investment contracts and select the most appropriate ones.
11. Perform studies and research on petroleum and the petrochemcial industries.
12. Propose laws and issue regulations and decrees to protect and make best use of oil resources.

Article (2)

1. The organizational structure of the Oil Secretariat shall be as follows:

1. Office of the Secretary
2. Legal Office
3. Office of International Cooperation
4. General Directorate of Planning and Economic Research
5. General Directorate of Technical Monitoring and Assessment
6. General Directorate of Auditing Oil Companies
7. General Directorate of Workforce Planning and Development
8. General Directorate of Administrative and Financial Affairs

The People’s Committee for Petroleum may establish other offices with specific competencies or form working groups to provide technical consulting to the Committee in the various fields of the petroleum industry.

2. The People’s Committee for Petroleum shall be affiliated to the following:

1. The National Oil Corporation.
2. The executive agency for the project to plan and build two new residential cities in Brega and Ra’s Lanuf.

Article (3)

The Oil Secretariat shall have a general clerk who shall, under the supervision of the secretary, exercise the competencies set out in the legislation in force.

Article (4)

The Office of the Secretary-General shall hold competence to organize the secretary’s meetings, prepare minutes of the meetings of the People’s Committee for Petroleum, inform the concerned bodies of decisions relevant thereto and periodically monitor the implementation thereof, receive and submit the correspondence and reports sent to the Secretary from the various bodies, and keep records on all documents issued by the Office of the Secretary.

Article (5)

The Legal Office shall hold competence to provide legal opinions on the issues submitted thereto and contribute to the preparation of legislation on the sector and other matters assigned thereto.

Article (6)

The Office of International Cooperation shall have competence to communicate with international and regional organizations active in the fields of petroleum and oil and to monitor all matters related to foreign relations and international and Arab cooperation in the field of petroleum, gas and the petrochemical industries, in coordination with the People’s Office for Foreign Communication and International Cooperation.

Article (7)

The General Directorate of Planning and Economic Research shall, in cooperation with the bodies affiliated to the People’s Committee for Petroleum, hold competence to propose the sector plan and monitor the implementation thereof once approved, and conduct research and studies on the economic aspects of issues related to petroleum and the petrochemical industry and the price levels of crude oil, gas, and the related products.

Article (8)

The General Directorate of Technical Monitoring and Assessment shall have competence to approve measures related to permits to drill and deepen exploratory and development wells, in accordance with the regulations in force, as well as to approve measures relating to permissions to close dry wells and wells with non-commercial production; approve technically permitted rates of production from oil fields; unify production from oil-containing layers extending from an area pertaining to more than one contract holder, in accordance with the regulations in force; grant preliminary production test certificates and monitor assessment operations and transporation, storage, and export of petroleum and gas; prepare all necessary data and statistics; and monitor the implementation of programs on industrial safety and security, environmental protection, and control of pollution in oil fields, ports and other oil sites, in cooperation with the related entities.

Article (9)

The General Directorate of Auditing Oil Companies shall have competence to audit oil companies and companies connected therewith, verify financial control, inspect the activities of said companies, and confirm compliance with sound accounting systems and payment of liabilities on the dates due. It shall also hold competence to monitor and confirm proper implementation of the annual budgets of such companies.

Article (10)

The General Directorate of Workforce Planning and Development shall have competence to calculate and classify the petroleum sector workforce, determine its actual needs and prepare plans to develop and qualify national elements working in the sector, including programs and plans to Libyanize jobs and monitor the implementation thereof.

Article (11)

The General Directorate of Administrative and Financial Affairs shall hold competence to enforce rules and regulations related to workers’ affairs, as well as to perform the activities of record-keeping, printing, services, public relations, administrative automation to improve performance, and everything related to administrative and financial affairs at the Secretariat.

Article (12)

A number of employees, to be appointed or assigned in accordance with legislation in force, shall join the Oil Secretariat.

To complete the organizational structure of the administrative and technical bodies of the Oil Secretariat, the secretary of the People’s Committee for Petroleum may coordinate with the secretary of the administrative committee of the National Petroleum Corporation to task of a number of specialists in the petroleum sector to work at the Secretariat by assignment, and their original place of employment shall continue to pay their salaries and financial benefits during the task period.

Article (13)

The employees of the General Directorate of Assessment at the National Petroleum Corporation shall move to the Oil Secretariat.

Article (14)

The bodies and companies mentined below, which were transferred pursuant to General People’s Committee Decree No. 158/86, shall remain affiliated to the National Petroleum Corporation:

1. Petroleum Training and Qualifying Institute.
2. Specific Training Center for the Oil Refining Industry and Chemical and Petrochemical Industries in Zawia.
3. Raslanuf Oil & Gas Processing Co.
4. National Petrochemicals Company (NAPETCO).

Article (15)

Without prejudice to the preceeding Article, all competencies and powers provided to the People’s Committee for Petroleum or the secretary thereof that were assigned to other entities under General People’s Committee Decree No. 158/86 or any other decrees shall transfer to the People’s Committee for Petroleum or the secretary thereof, as the case may be.

Article (16)

The internal regulations of the Oil Secretariat shall be issued under a decree from the People’s Committee for Petroleum.

Article (17)

This Law shall enter into force on the date of its issuance, and shall be published in the Official Gazette.

The General People’s Committee – Libya

Issued on: 28 Dhu al-Hijja 1398 FDP

Corresponding to: 31 July 1989