Law No. (120) of 1970 on organising oil affairs

Law No. (120) of 1970 AD

On the Regulation of the Oil Law

 

In the Name of the People,

The Revolutionary Command Council

● Upon review of the Constitutional Declaration issued on 2 Shawwal 1389 AH,

corresponding to 11 December 1969 AD;

● Petroleum Law No. (25) of 1955 AD, as amended; and

● Law No. (24) of 1970 AD on the Libyan National Oil Corporation;

● Law No. (79) of 1970 AD on the Re-organization of the Industry and

Mineral Resources Sector;

● Decree of the Revolutionary Command Council issued on 7 Safar 1390 AH, corresponding to

14 April 1970 AD for the formation of the Oil Prices Committee;

● Council of Ministers Decree issued on 24 February 1964 AD on the establishment of

public departments at the Ministry of Petroleum Affairs;

● Council of Ministers Decree issued on 27 Ramadan1389 AH, corresponding to

7 December 1969 AD, with certain grievances at the Ministry of Oil; and

● Council of Ministers Decree issued on 14 Jumada al Thania 1390 AH

Corresponding to 26 August 1970 AD on the establishment of the Institute of Oil Affairs, and

● Based on the submission of the Minister of Oil and the approval of the Council of Ministers,

 

Issued the following law

 

Article (1)

The name of the Ministry of Oil and Minerals shall be amended to the Ministry of Oil.

 

Article (2)

The Ministry of Oil shall be responsible for the affairs of organization, supervision, follow-up and control in relation to the investment of oil wealth within the limits of the general oil policy, development plan, laws and regulations in force in the country. The Ministry may, in particular:

a) Propose the general oil policy taking into account the general policy of the State and submit the same to the competent authorities for approval, and to be implemented by the Ministry;

b) Prepare a draft State plan in respect of the oil sector in cooperation with the competent authorities, work on its issuance, and follow up on the implementation of the approved plan and realization of its objectives;

c) Establish, develop and supervise the implementation of the best methods to preserve oil wealth and the proper exploitation thereof;

d) Prepare the best ways to realize a fair income for the Libyan people from their oil wealth, take the necessary measures to put this into practice, approve a general structure for crude oil and gas prices, and adopt all means to implement the same, including conducting negotiations with oil companies;

e) Supervise the implementation of programs to qualify and train citizens to assume technical and administrative positions in the oil industry and associated businesses, and implement the same in cooperation with the competent authorities;

f) Supervise the execution of the obligations of oil companies and companies associated with them with regard to the training and technical qualification of citizens for all oil operations;

g) Propose a national policy regarding training and job placement in oil companies and companies associated with them, submit the same to the competent authorities for approval, and supervise the implementation thereof;

h) Supervise the implementation of cultural, social and health projects established by oil companies in accordance with the provisions of the contracts concluded with them in cooperation with the competent authorities;

i) Financial and technical control of oil companies and companies associated with them, especially with regard to the proper conduct of business in fields and ports, and the adoption of sound methods of investment of oil wealth;

j) Conduct oil-related studies and research;

k) Propose laws, regulations and decrees in the field of oil wealth; and

l) Implement the provisions of the laws, regulations and decrees in respect of the Ministry’s jurisdiction.

 

Article (3)

The organizational structure of the Ministry of Oil shall be as follows:

a) Minister

He shall generally supervise all the Ministry’s organs, the Libyan National Oil Corporation and the Institute of Oil Affairs in accordance with the legislation governing the same, as well as any other public institution or body that is decided to be established and is related to oil affairs and reports to the Minister.

b) Deputy of the Ministry:

He shall be responsible for the functioning of all technical, administrative, financial and personnel affairs, the Ministry’s relationship with other ministries, authorities, public institutions, and departments, and its relationship with international and foreign organizations and bodies. Branch offices, consultants and experts assigned to work at the ministry level shall be attached to him.

The deputy shall exercise these responsibilities under the supervision and directives of the Minister.

c) The following general directorates, which are:

1. General Directorate for Technical Affairs.

2. General Directorate for Economic Affairs.

3. General Directorate for Corporate Accounting.

4. General Directorate for Employment and Training.

5. General Directorate for Financial and Administrative Affairs.

d) The following specific offices:

1. Legal Office.

2. Planning Office.

3. Public Relations Office.

Other offices may be established by a decree of the Minister setting out their responsibilities.

e) Ministry branches:

 

Article (4)

The determination of the responsibilities in the aforementioned general directorates shall be as follows:

1. General Directorate for Technical Affairs:

To study, prepare and supervise the implementation of the best methods to preserve oil wealth and its proper exploitation, to control the activity of oil companies and associated companies, whether in fields or at ports, and to ensure their compliance with the valid principles prevalent in the oil industry and the provisions of the laws and regulations in force.

2. General Directorate for Economic Affairs:

To conduct studies, statistics and research related to the economic aspects of oil affairs, oil and gas price levels, and organize the country’s effective participation in oil organizations and conferences within the limits of realizing national interests.

3. General Directorate for Corporate Accounting.

To review and audit accounts of oil companies and related companies in order to ensure protection of the State’s right to its financial returns and to conduct oversight and inspection of the business of the aforementioned companies to verify that they follow sound accounting systems and fulfill their obligations on time.

4. General Directorate for Employment and Training:

To prepare the necessary programs to train and qualify citizens to work in the oil industry and associated businesses, supervise implementation thereof in partnership with the competent authorities, monitor the training and education systems and social projects that companies are obliged to do, in cooperation with the competent authorities, and take the necessary measures to fill jobs in oil companies and related companies in accordance with the provisions prescribed in the applicable laws and regulations and the general policy laid down by the competent authorities in this regard.

5. General Directorate for Financial and Administrative Affairs.

To carry out all Ministry-related financial and administrative work and issues related to personnel and labor affairs, accounts, the budget, secretarial work, translation, filing and transportation.

 

Article (5)

The responsibilities in the specific offices shall be determined as follows:

1. Legal Office:

To express a legal opinion on issues required for the progress of work, and participate in the preparation of Ministry-related legislation and the preparation of decrees and other matters that are assigned to the office and that are of a legal or advisory nature.

2. Planning Office:

It shall cooperate with the Ministry’s agencies in proposing the development plan for the oil sector and development projects related thereto, and shall be the liaison between the Ministry and the Technical Planning Commission.

3. Public Relations Office:

To introduce the activities performed by the Ministry through various media, create confidence, and realize cooperation between the Ministry, citizens, various other ministries, agencies and companies in order to serve the public interest.

 

Article (6)

The branches of the Ministry, each within its jurisdiction, shall exercise the responsibilities assigned to the Ministry of Oil pursuant to the laws and regulations within the limits of the Ministry’s bylaws.

A decree of the Minister of Oil shall be issued for the establishment of branches and the determination of jurisdiction of each of them and the organization of work therein.

 

Article (7)

A decree of the Minister of Oil shall be issued for the bylaws of the Ministry and the distribution of work therein.

 

Article (8)

Any provision that is in conflict with the provisions herein shall be repealed.

 

Article (9)

The Minister of Oil shall implement this law, which shall enter into force on the issuance date thereof, and shall be published in the Official Gazette.

 

The Revolutionary Command Council

Colonel / Muammar Gaddafi

Prime Minister

Ezzedine Al Mabrouk

Minister of Oil

 

Issued on 18 Sha’ban 1390 AH

Corresponding to 18 October 1970 AD