Libya: Oil Factor

Every one knows that Libya have extensive and good quality of oil. Many country are use the oil from Libya as Italy use the oil of Libya and other country like China also. After relations with Libya improved with Gadaffi turning over suspects in the Lockerbie case, destroying his own WMDs, and breaking off with the radical terrorist groups he funded and supported, many western oil companies made deals with the Libyan government to develop the oil fields. May be this fight are take place for the oil but many oil companies are done big arragenments for this fight.

The National Oil Company is dominates for oil patch and now Gaddafi on seventies and he has pursued a process of a partial nationalization of foreign companies. NCO (National Oil Corporation) is national oil company of Libya and it dominates the oil industry of Libya, along with a number of smaller subsidiaries, which combined account for around half of the country's oil output.

Recently Libya's situation are very critical. Any body can't say anything for this situation in Libya not even wars. These contracts are often used in countries that are loathe to sell rights to their resources directly to companies. Companies usually would prefer that type of arrangement and it is often but not always more profitable. After failing to convince the Iraqis to alienate their resources to foreign oil, this was the mechanism used to involve foreign oil in Iraqi development,. It has been used in other countries as well.