afrol News, 29 May - Libyan authorities are brimming with joy over forging a US $900 million joint deal with the British energy giant, BP.

The oil giant withdrew from Libya in 1974 following the nationalisation of the country’s oil industry. It had not since then operated in the

Prior to the signing of the deal, Shokri Ghanem who heads Libya’s national oil corporation confirmed the possibility of signing the huge oil exploration and prospecting accord with BP.

BP’s Chief Executive, Tony Hayward said the joint venture deal with the Libyan Investment Corporation, which was endorsed during the trip of the British Prime Minister’s visit to Libya, has so far been the oil giant’s biggest exploration commitment.

The deal licensed BP to explore 54,000 square kilometres at both onshore and offshore areas in Ghadames and Sirt basins.

The British government’s readiness to develop an economic relationship with Libya has started to yield positive results for a country that had once been bullied left and right by the world’s superpowers for not respecting the rights of her citizens. The Libya-Britain relationship has magnetised BP to go back to business with Libya.

But the lifting of the United States sanctions on Libya in 2004 set the stage for the oil-rich desert country to join the comity of nations.

BP officials are excited over working with Libya’s National Oil Company in a bid to develop the country’s natural resources for both domestic and international markets.

But a BP London spokesperson had earlier told the press that the energy giant’s negotiations with Libya centre on gas and not oil. Over the months, BP had reportedly been engaging the Libyan authorities on signing a multi-billion dollar gas exploration and development agreement with their country.

Being the second largest oil producer in Africa, Libya also has an estimated 1,314 billion cubic metres of natural gas reserves. It produces 1.7 million barrels a day.

By staff writer

© afrol News

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