Law No. (69) of 1970 on limiting the import, sale and distribution activity for petroleum products to the National Libyan Oil Corporation

 

Law No. (69) of 1970 AD

On restricting the activity of importing, selling and distributing petroleum

products to the Libyan National Oil Corporation

 

In the Name of the People

The Revolutionary Command Council,

● Upon review of Constitutional Declaration No. 1 issued on 2 Shawwal 1389 AH,

Corresponding to 11 December 1969 AD; and

● Law No. 38 of 1969 AD on Import and Export; and

● Law No. (24) of 1970 on the Libyan National Oil Corporation, and

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

 

Issued the following law

 

Article (1)

The import, sale and distribution of imported petroleum products, including gas filled in cylinders, shall be restricted to the Libyan National Oil Corporation.

 

Article (2)

The ownership of the following distribution companies and establishments shall devolve to the State:

a) Al Sale Company (a Libyan Joint Stock Company).

b) Shell Libya Limited.

c) Esso Standard Libya Joint Stock Company (Marketing Department).

d) Petro Libya Joint Stock Company.

e) Esso Standard Near East Company (Libyan Branch).

This shall include all funds, rights and assets of the aforementioned companies and establishments, and in particular, storage warehouses, distribution stations, workshops, equipment, cylinders for filling gas, furniture, cars and other assets and rights related to the activity referred to in Article 1.

 

Article (3)

The companies and establishments stipulated in the previous article shall retain their legal structure and continue to carry on their activities. They shall fall under the Libyan National Oil Corporation and this corporation shall replace the aforementioned companies and establishments in terms of their rights and obligations, provided that it shall not be liable for any previous obligations except within the limits of the funds, rights, and assets that have devolved to the State on the date this law comes into force.

 

Article (4)

The State shall pay the parties concerned compensation for the funds, rights and assets that have devolved to it in accordance with the provisions of Article 2.

The value of the compensation referred to in respect of each of the companies and establishments stipulated in the aforementioned Article 2 shall be determined by a committee constituted as follows:

a) A counselor in the Courts of Appeal – as chairman, and to be nominated by the Minister of Justice.

b) A representative of the Libyan National Oil Corporation, as a member, and to be nominated by the Minister of Oil and Minerals.

c) A representative of the Ministry of Treasury, as a member, and to be nominated by the Minister of Treasury.

The committee may, in the performance of its duties, seek the assistance it deems necessary from the employees or others.

 

Article (5)

The amounts necessary to pay taxes, fees, any other amounts due to the public treasury and debts related to the subject matter of the activity undertaken by each company or establishment covered by this law shall be deducted from the value of the compensation due to the persons concerned in accordance with Article 4, within the limits of the value of such compensation.

The holders of the debts referred to in the preceding paragraph shall submit a statement of their debts, together with the supporting documents proving the same, to the committee stipulated in Article 4 within no more than thirty days from the issuance of the decision to form such a committee.

 

Article (6)

The committee stipulated in Article 4 shall issue a decision to estimate the compensation and determine the debts to be deducted therefrom within a period not exceeding three months from the date of issuing the decision to form such committee.

The committee’s decision shall be justified and final and may not be challenged by any way of appeal, and the parties concerned shall be notified thereof within thirty days from the date of its issuance.

 

Article (7)

Interim committees shall be appointed by a resolution of the Board of Directors of the Libyan National Oil Corporation to undertake the task of receiving the funds and assets of the companies and establishments stipulated in Article 2. These committees shall also be in charge of managing these companies and establishments and representing them in their relations with third parties and before the courts.

The decisions of the aforementioned committees that will be automatically effective and those that will be subject to the ratification of the Corporation’s Chairman or Board of Directors shall be determined by a resolution of the Corporation’s Board of Directors.

 

Article (8)

The management committees stipulated in the preceding article shall consist of five members selected from among employees of the government, public institutions and bodies, or the companies and establishments referred to in Article 2.

These committees shall be responsible for their work before the chairman of the board of directors of the Libyan National Oil Corporation or his representative.

These committees may delegate one or more members to exercise some or all of their responsibilities in relation to some regions.

 

Article (9)

With respect to the companies and establishments referred to in Article 2, the board of directors of the Corporation shall have the responsibilities stipulated in Article 21 of Law No. 24 of 1970 AD. It may determine the name taken by each company or establishment thereof, lay down the system for its management, regulate its relations with the Corporation and coordinate between its various activities.

 

Article (10)

The employees and workers of the companies and establishments stipulated in Article 2 of this law shall continue to perform their jobs and none of them may leave or refrain from his job unless he is relieved therefrom by a decision of the management committees referred to in Articles 7 and 8 of this law. These employees and workers shall retain their current status in accordance with the employment contracts concluded with them.

 

Article (11)

The contractors who are currently distributing petroleum products shall continue their work in accordance with the contracts concluded with them, and none of them may stop the distribution service unless this is by a decision of the aforementioned management committees.

 

Article (12)

As an exception to the provisions of Article 1 of this law, the Libyan National Oil Corporation may assign the work of importing aviation fuel to specialized companies and bodies, in accordance with the conditions prescribed in the agreements it concludes with them.

 

Article (13)

Any contract, transaction, or procedure that takes place in violation of the provisions of this law shall be deemed null and void. Banks, bodies and individuals shall be prohibited from disbursing any amounts or paying any claims or entitlements against the companies and establishments referred to in this law without the approval of the aforementioned management committees.

 

Article (14)

Violation of any provision of this law shall be punishable by imprisonment for a period not exceeding six months and a fine not exceeding one hundred pounds, or by either of these two penalties.

 

Article (15)

The Minister of Oil and Minerals shall implement this law, which shall take effect on the issuance date thereof and shall be published in the Official Gazette.

 

The Revolutionary Command Council

Ezzedine Al Mabrouk                                   Major / Abdul Salam Ahmed Julud

Minister of Oil and Minerals                                  Deputy Prime Minister

Issued on 1 Jumada al-Ula 1390 AH

Corresponding to 4 July 1970 AD