Joint Oil establishment was formed in accordance with an international agreement signed on August 8th, 1988, between Libya and Tunisia in Benghazi (Law N° 10 of 1989 dated February 1st, 1989).
The Articles of Association were drafted on December 7th, 1988, and officially ratified on April 4th, 1989. The company's objectives, outlined in Article 2 of the Establishment Agreement, encompass:
- Conducting joint exploration and exploitation of oil and gas resources in offshore areas of both nations,
- Provision of maintenance, supply, and support services for related facilities,
- Conducting pertinent technical and economic studies, and
- Contributing to the training and qualification of qualified personnel from both countries.
The joint venture secured an exploration license spanning over 3,000 square kilometers on both sides of the continental shelf between the two countries, situated 150 kilometers northwest of Tripoli and 110 kilometers northeast of Djerba. Upon mutual agreement, the company can extend its operations to the onshore areas. The joint entity holds dual-state authority over the Joint Oil Block. An additional agreement, signed in Tunis on October 25th, 1995, and ratified on March 3rd, 1996 (Law N° 8 of 1996).
On May 23rd, 2008, an amendment agreement was signed, granting Joint Oil the authority to operate both onshore and offshore in the two countries and abroad (Law N° 22 of 2010, dated May 10th, 2010). Simultaneously, amended articles of association were adopted still with the company's capital set at five million US dollars. The Establishment Agreement initially set the company's duration in the first stage at twenty-five (25) years, with the option of renewal from the agreement date. This provision underwent two amendments: The company's original headquarters were on Djerba, Tunisia and as of July 1st, 2008, it was relocated to Tunis.
On December 20th, 2017, a second amendment extended the company's legal term to seventy-five (75) years, subject to renewal (Official Gazette N° 141 of 2018 dated November 20th, 2018).