5.000
%
Neutral
105
mm boe
84
%
Recent reshuffles have boosted confidence in the region, and with the NOC supportive of new entrants, we have raised out outlook to Neutral.
March 19, 2024
Africa - North
mm bbl
bcf
Northern Africa, bordering the Mediterranean Sea, between Egypt, Tunisia, and Algeria.
Multiple (PSC/Concession)
The fiscal regime that applies to the petroleum industry consists of a combination of corporate income tax (CIT) and other taxes. Production sharing contracts (PSCs) between the government and contractors are the general means of regulating the industry's activities. Under the PSC regime, the National Oil Corporation (NOC) is deemed to pay taxes, and the tax computation is notional.
Libya presents a challenging investment climate. Reconstruction needs, severely underserved consumer demand, and abundant natural resources provide many opportunities for domestic and foreign investors, and the Government of National Accord (GNA) has repeatedly expressed interest in receiving greater foreign investment. Nonetheless, the country’s prospects for foreign investment continue to be hampered by: 1) persistent political instability and security risks posed by the ongoing civil conflict and by the presence of non-state militias and extremist and terrorist groups; 2) non-state actors’ seizure of key economic infrastructure, including major oil and gas terminals since January 2020; and 3) opaque bureaucracy, onerous regulations, and widespread rent-seeking activity in public administration. The Libyan government has a long history of not honouring contracts and payments, and several firms continue to be owed back payments for work done before and after the 2011 revolution. The sectors that have historically attracted the most significant investment into Libya are: oil and gas, electricity, and infrastructure.
Source: ESRI, Heritage Index, HMG Foreign & Commonwealth Office, US Department of State, International Trade Administration, International Law Review, Ernst & Young, Wood Makenzie & OGA data.
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