BP yesterday said it was set to announce a $900 million (€669 million) gas exploration deal with Libya, a country it withdrew from more than 30 years ago when its leader Col Muammar Gadafy nationalised the oil industry.
The deal came as British prime minister Tony Blair began a tour of Africa with a visit to Libya and is a further sign of Tripoli's increasing ties with the West after decades of isolation. Mr Blair said the planned deal would have been unthinkable only a decade ago, but was the product of a transformed diplomatic, security and commercial relationship between Libya and the West.
It is one of a series of commercial contracts for UK companies to be unveiled during a visit to Africa by Mr Blair. The prime minister's visit to Tripoli kicked off his last international tour before he stands down on June 27th. It is intended to underline his foreign policy achievements and to build momentum for fresh commitments on climate change and aid to Africa ahead of next week's G8 summit of industrialised nations in Germany.
Major oil companies including Royal Dutch Shell, Eni and ConocoPhillips have been moving back into Libya since the US lifted sanctions in 2004.
One oil analyst said yesterday that BP was in fact "a little behind the curve". Libya is attractive to foreign oil companies because it is more open to investment than some other Opec members.
