The National Oil Corporation (NOC) was established under Law No. 24 of 1970, issued on 12th November 1970, in order to replace the General Libyan petroleum Corporation which was established under Law No. 13 for 1968 issued on 14th April 1968. In addition to the authorities of the previous corporation, new ones were delegated to NOC. This enabled it to face the massive and rapid development in the oil industry in a more flexible manner, and to keep abreast of the changes in this international industry.

NOC was reorganized under a decision taken by the General Secretariat of the General People's Congress, No. 10 of 1979. The re organisation was meant to enable NOC to achieve the goals of the transformation development plans in the oil sector. It was designed to support the national economy through the in - crease, management and investment of the oil wealth inside and outside the SLAJ through its fully owned companies, or in partnership with others.

In 1986, the General People's Committee issued its Decision No. 158 concerning the Re-allocation of the authorities of the Secretariat of Petroleum (SOP). A considerable part of these authorities were delegated to NOC.

NOC performs its duties listed in the laws and bylaws of its inception, through its fully owned companies which vary in activity from operating and producing companies, to refining, processing and domestic / international marketing companies, to various service companies. Moreover, NOC performs some of its activities through partnership with foreign exploration, production and specialized oil service companies.