Investment in Libyan Oil Industry

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But owing to reforms being undertaken in the country and improvement in relations with other nations, opportunities are now being explored to take up investments in the country and take advantage of the emerging situation. Libya on its part appears to be making all the right moves. Colonel Qaddafi too has expressed his opinion in favour of reforms together with the vision of applied socialism and popular democracy. Multinational companies and foreign institutional investors (FIIs) are now being given encouraging signals to invest in the country. Prime Minister Shukri Ghanem, supported by Seif al-Islam, the son of Col Qaddafi has started the reforms process. The ban put on the imports of Libyan oil and some exports to Libya in 1982 by some nations has also been subsumed in the emerging scenario. Libya has the largest reserve of crude oil, but despite such a great wealth and a population of just about 6 Million the country could not progress much during all these years (The Economist, 2007). With the improvement in geo-political equations and a conducive atmosphere for investments, the oil sector seems to have become quite attractive in Libya.
The main intention of the study is to develop a better understanding of the manner in which Libya has charted the reform course for itself in the past and the investment opportunities being presented to the world. The oil is sector is one which offers huge opportunities from a long term perspective. During the study an effort would be made to analyse the process of reform in Libya. In addition some of the major oil companies will also be analysed to explore how these companies are preparing themselves to take on the global players. In particular the study will try to seek answers to the following key objectives.
To analyze the economic condition of Libya and how the sanctions have impacted the economic condition of the country.
To study the oil industry of the country and the levels of competition amongst the oil companies.
Determine the factors assisting the upward movement of Libyan economy in the rect past.
To identify the behavioural patterns of some of the oil majors, investment bankers, etc. During the course of the study efforts would be made to evaluate how these investors respond to the introduction of economic reforms and how the oil industry in general is being affected by these reforms.
Analyze some of the fast developing economies and compare their growth vis–vis the economy of a country like Libya. This will be an effort to point out some areas which require attention in order to open up the investments on a larger scale.
Oil exploration is more of a technical field requiring skilled workers and managers. During the study an effort would be made to study the HR scenario in the country in general for taking up the challenge of increased activities in the fields of oil exploration etc.
Scope of the Report
Scope and context of this study will include.
1. Analysis of an overall picture of the Libyan economy and its oil industry particularly after the new regime has come into effect
2. Analysis of some of the major oil companies in Libya.
3. Growing curiosity about the Libyan market and the interest of many