BP in gas deal with Libya

LONDON – British energy giant BP has entered into negotiations with Libya over a multi-billion US dollar natural gas exploration and development agreement in the north African former pariah state, the Financial Times reported Friday.

Discussions, which are at an early stage, involve a liquefied natural gas project that could supply the North American or European markets, industry insiders reportedly told the Financial Times. BP confirmed it was in talks with Libya but declined to discuss details.”We are continuing to look for opportunities in Libya and when we have a substantive agreement we hope to be able to announce it,” the company said.Libya is seeking massive investment to boost its energy sector.The north African country’s development was stunted under international sanctions imposed after a United States airliner was downed in December, 1988 by a bomb over the Scottish town of Lockerbie, killing 270 people.Libya eventually accepted responsibility and agreed to pay US$2,7 billion in compensation to victims’ families, but only after years of United Nations sanctions.United States and European sanctions on Libya were lifted in 2004.Since then, Western companies have flooded into the country, encouraged by a wave of privatisations in what was a tightly controlled socialist economy.In October, Libya awarded 44 oil exploration permits to predominantly Asian and European companies.- Nampa-AFPBP confirmed it was in talks with Libya but declined to discuss details.”We are continuing to look for opportunities in Libya and when we have a substantive agreement we hope to be able to announce it,” the company said.Libya is seeking massive investment to boost its energy sector.The north African country’s development was stunted under international sanctions imposed after a United States airliner was downed in December, 1988 by a bomb over the Scottish town of Lockerbie, killing 270 people.Libya eventually accepted responsibility and agreed to pay US$2,7 billion in compensation to victims’ families, but only after years of United Nations sanctions.United States and European sanctions on Libya were lifted in 2004.Since then, Western companies have flooded into the country, encouraged by a wave of privatisations in what was a tightly controlled socialist economy.In October, Libya awarded 44 oil exploration permits to predominantly Asian and European companies.- Nampa-AFP