A Research On The Oil Cooperation Between China And Libya Pre And Post The Libyan War

Since becoming a net petroleum importer country in 1993, Chinese dependence upon oil import has been increasing year by year and reached the highest 60.6% in 2015. Chinese petroleum security strategy demands diversified imports and utilizing the overseas oil resources actively and constructing a diversified and stable oil supply system. Oil industry is the supporting industry in Libyan economy, which claims the largest reserves in Africa and has great exploitation and development potentiality. It is difficult to be replaced in the international oil market because of that the crude oil is low in sulfur and high quality, so there is a good space for development of the oil cooperation between China and Libya. The oil cooperation between China and Libya has been expanding in scale but restricted by the exclusion of western oil companies and the limitation of Libya’s oil policy, since the Chinese oil companies entered Libya in 2001. New changes have taken place on the oil cooperation, risk and chance coexist, after the 2011 Libyan War. Currently, the reconstruction of the oil industry has been put on the schedule, even if there is not a steady pace situation in Libya. It can be foreknow, in order to attract more foreign investments to recover the national economic, the Libya government will provide more favorable oil policies, and reopen its upstream of oil exploration. At present, the Chinese oil companies are actively concerned about reconstruction of the oil industry of Libya, and the new government has also offered an olive branch to the Chinese oil companies while the tendency of the renewed oil cooperation between them is inevitable.This paper analyzes the problems and advantage, as well as the new risks and opportunities in the new situation, according to examine the general situation, characteristics and achievements of the oil cooperation between China and Libya before the War in 2011. Then explores the ways which may continue to promote the oil cooperation between the two countries, by studying the advanced experience and successful practices from the international multinational oil companies and Chinese oil enterprises.