Bp To Announce A Return To Libya

[TriWooOx]

Quote:Oil giant BP will announce shortly that it is returning to Libya, a spokesman for Prime Minister Tony Blair has said.

"We are now beginning to develop an economic relationship with Libya," the spokesman said.

"That's why companies such as BP can begin to go back into the country today," he added.

The move is expected during a visit by Mr Blair to the capital, Tripoli. BP withdrew from Libya in 1974, when the oil industry there was nationalised.

Deal hopes

A BP spokesman confirmed that the company had been in discussions with Libya for some time over a possible gas project.

He said that the company was "hopeful of a positive outcome", but could not confirm that an announcement was due.

If the deal materialises as expected, it will come as the latest stage in Libya's gradual return to the international fold since the US lifted its sanctions in 2004.

Royal Dutch Shell signed a contract two years ago to return to Libya. That deal was timed to coincide with Mr Blair's first visit to the country.

BG Group has also been awarded exploration and production rights in Libya.

http://news.bbc.co.uk/1/hi/business/6700255.stm