International Arbitration in Disputes of Oil Companies Operating in Libya

Abstract

This research aims to analyze the legal framework of international arbitration in Libya and identify the nature of oil disputes that can be resolved through arbitration. It also explores the challenges and opportunities facing international arbitration in Libya. The research adopts an analytical approach and concludes that international arbitration is an effective means to resolve disputes in the oil sector, ensuring neutrality and fairness for companies in the settlement of disputes arising from oil and gas contracts. Arbitration provides a swift and efficient environment compared to traditional judicial methods, helping to reduce time and costs. However, international arbitration in Libya faces several challenges, including ambiguous local legislation, the absence of internationally recognized arbitration centers, and the overlap between local judicial authorities and international arbitration. The volatile security and political situation in Libya may also negatively impact the enforcement of arbitration awards and hinder the legal process. Despite these challenges, there are significant opportunities to improve the arbitration environment in Libya by updating local legislation to align with international standards, establishing international arbitration centers, and training local legal cadres. By enhancing political and economic stability in the country, investment opportunities can be improved, attracting foreign companies to invest in Libya.