The Legal 500

Overview

Libya’s economy remains dominated by the energy sector, although steps toward the privatisation of state companies and the thinning of government bureaucracy slowly moves it forward and aids diversification. Investment in diversifying infrastructure projects continue and 2008 saw the Department for the Implementation of Railway Projects of the Great Socialist People’s Libyan Arab Jamahiriya sign a €2.2bn contract with Russian Railways for the construction of a 554km railway line between Surt and Benghazi.

At the end of 2008 Gulf Finance House, an Islamic Investment Bank, unveiled its master plan for Energy City Libya, a $5bn project on a six square kilometre site at Sabratha. The project will capitalise on Libya’s considerable oil and gas reserves in addition to its strategic location between Europe, Africa and the Middle East. Alongside the business components, Energy City Libya will incorporate residential, retail and leisure facilities. In addition to developments of fossil fuel projects the country is starting to put in place incentives for the use and development of renewable energy. A target of 10% by 2020 has been put in place for renewable energy contributions.

In February 2008 the second of Libya’s bank privatisations was finalised, following on from the 

hugely successful sale of a stake in Sahara Bank in 2007. Arab Bank won the bidding process and purchased a 19% stake in Libya’s Al-Wahda Bank, the countries fifth largest, for €210m. The take-over agreement entitles Arab Bank to increase its share to 51% in the medium term.

Baker & McKenzie LLP and London partner Bernd Ratzke are recommended and continue to be active in the region. The firm retains the Central Bank of Libya as a client and advised throughout the recent tender process for Al-Wahda Bank. This follows on from the success of the Sahara Bank privatisation in 2007.

Denton Wilde Sapte’s Paris office remains active in Libya. Recent projects for the firm include advising a major European water utility in a joint venture with a Libyan party. Cyril Vock is recommended.

Eversheds LLP expertise in the region stems from the experience of David Sellers and Nanette Pilkington, both based in Paris. The firm has acted for numerous banks and financial institutions in the country and boasts an impressive reputation and understanding of joint ventures within Libya.

Stéphane Brabant in Paris heads the Africa practice at Herbert Smith LLP that offers a ‘ very good understanding’ of the Libyan market. Notable work includes advising on the development of a major petrochemical project. In addition, it advised two separate banks on the issuance of securities to be subscribed by Libyan investors located in the region. Mehdi Haroun is also recommended.

Across the London and Paris offices, Linklaters LLP has experience in the region advising mostly on energy deals. Manzer Ijaz is recommended for his advice to BP on the development and negotiation with the Libyan National Oil Company of a split onshore and offshore exploration and production contract, as well as its Libyan joint venture partner arrangements.

Norton Rose LLP Paris continues to act for Société Générale on matters within Libya. Recent work included advising the bank on its participation in the bidding for a 19% minority stake in Al-Wahda Bank – the second in Libya’s bank privatisations. Alain Malek in Paris is recommended.

Stephenson Harwood offers knowledge and experience coupled with an ‘ excellent reputation’ in Libya. Partner Paul Phillips was recently part of the team that advised the Libyan Government on the redrafting of the countries commercial, banking and corporate laws. The task also involved an updating of litigation and arbitration rules. ‘ Commercially orientated’, clients praise the firms for its ability and ‘ willingness to go the extra mile when required’. The firm has seen other high profile instructions within the region in addition to Paul Phillip’s role in the Lockerbie trial.

Shearman & Sterling LLP runs its Libya practice from London and Abu Dhabi. The team acted for Dow Chemical Company on its joint venture with National Oil Corporation of Libya (NOC) to expand the Ras Lanuf petrochemical complex. Additional work in the region includes advice on a number of other petrochemical transactions. Nick Buckworth in London and Philip Dundas in Abu Dhabi are recommended.