Z. Gerber and Stephen
With forces loyal to the Libyan
Transitional National Council ("TNC") appearing to control the
streets of Tripoli and to be battling the last remaining vestiges of Qadhafi's
forces, the collapse of the Qadhafi regime appears imminent. The fall of the
Qadhafi regime will inevitably open doors to lucrative business opportunities
in Libya including Libya's oil reserves, which are the largest in Africa.
Multiplying the potential opportunities for U.S. companies is a statement from
the TNC that suggests it may reallocate billions of dollars of oil exploration
and construction contracts that had previously been awarded to Chinese, Russian
and Brazilian companies to U.S., European and Qatari companies given the lack
of support that the TNC received from China, Russia and Brazil during the rebel
Companies that are considering how
best to compete for these opportunities with the TNC should begin making
concrete plans to do so as early as possible. This is particularly
critical, given that many international companies have already begun their
efforts to enter or re-enter the Libyan market. For example, earlier this
week, the TNC signed a memorandum of cooperation with a European oil field
services company agreeing to work together to create conditions allowing the
company to restart its pre-uprising operations in Libya. Additionally,
other European corporations are also believed to already be engaged in efforts
to reach out to the TNC in order to enter the Libyan market once the current
situation in Libya stabilizes.
Although the U.S. still has
sanctions in place under Executive Order # 13566 that block the property of,
and prohibit any transactions with, any entity that is owned or controlled by
the Qadhafi regime or any other Specially Designated Nationals
("SDN"), U.S. persons should, nevertheless, be able to begin
fostering business deals with the TNC now under General License No. 6, issued
by the Office of Foreign Asset Control effective July 15, 2011. Under General
License No. 6, all transactions involving the TNC (including its agencies,
instrumentalities and controlled entities) are authorized so long as the
transactions do not involve any entities owned or controlled by the Qadhafi regime
or SDNs or any other blocked property.
Members of Fulbright's International
Trade Practice group will continue to monitor developments in Libya closely,
including whether and when revisions to the current U.S. Libyan Sanctions
Regulations will be implemented.
the Fulbright & Jaworski Publications page for more analysis of
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