British energy giant BP has entered into negotiations with Libya over a multibillion-dollar natural gas exploration and development agreement in the North African former pariah state, the Financial Times reported on 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 FT.
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, whose development was stunted under international sanctions imposed after a US airliner was downed in 1988 by a bomb over the Scottish town of Lockerbie, killing 270 people.
Libya eventually accepted responsibility and agreed to pay $2,7-billion dollars in compensation to victims’ families, but only after years of United Nations sanctions.
United States and European sanctions on Libya were lifted in 2004 and 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 after a first batch was awarded earlier last year mainly to US firms. – AFP