Evaluating the Libyan Gas Sector: Fiscal Policy and Contractual Terms
Published 7 November 2014
Introduction
Libya is a country situated on the southern Mediterranean coast, being part of the African continent with a coastline of around 2000km and a land area of 1,759,540 km, making it the fourth largest country in Africa by area. It shares borders with Egypt in the east, Sudan in the southeast, Chad and Niger in the south, Algeria to the west and Tunisia to the northwest. Despite its massive area, its population in 2013 stood at 6,002,347 , mainly concentrated in the Mediterranean coastal belt.
Politically, following the Libyan revolution of 2011, Libya has attempted to make strides toward establishing a democratic system of governance. Elections were held on July 7, 2012 for the General National Congress (GNC), which installed a new government on October 31, 2012 . However well-armed, autonomous militias continue to hold major power, causing serious internal security problems. Given the regional context and Libya's proximity to Europe, the Libyan security vacuum must be addressed urgently and collectively with much more input from those European powers which helped to effect the removal of Col Qaddafi in 2011. Otherwise the potential for Libya's fragile government to deteriorate into a failed state or to balkanize is becoming stronger day by day.