The aim of this research is to investigate the importance of Knowledge Management (KM) and Knowledge Management Systems (KMS) in the oil and gas industry of Libya. It explores their purposes, significance, activities, functions and barriers. The aim is to obtain and share the efficient and effective management strategies, policies and methods in order to support local partners.Data for the study were collected via two main methods: questionnaires and interviews (unstructured interviews). Two types of questionnaire were prepared for the study. The first type was specifically designed for the Libyan nationals, while the second was for the foreign personnel in the companies of the oil and gas industry of Libya. Each type of questionnaire was designed to seek different types of information.Unstructured interviews were also conducted with various individuals where more qualitative information was obtained.The research findings revealed that knowledge management is important because the collective knowledge creates power to enhance innovation and responsiveness, and it strengthens organisational performance. In addition, knowledge management involves many activities, whereby sharing, the most valuable practice, remained the most important activity in knowledge management in the companies surveyed, followed by conducting training programmes. Furthermore, it was found that the knowledge management systems in the surveyed companies were accessible to local individuals and that the main function of a knowledge management system, as indicated by the local participants, was to concentrate on creating, gathering as well as organising, their company's knowledge.