Occidental Petroleum Corp.'s Chairman and CEO Ray R. Irani met with Libyan leader Moammar al-Ghadafi and other officials in Libya last week to discuss the resumption of the company's operations that were suspended in 1986. The move was prompted by a recent thaw in US-Libyan relations and the prospect of an imminent end to US sanctions against Libya.
Occidental plans to open an office in Tripoli soon, Irani told reporters afterward, adding, "We're excited about the significant improvement in US-Libyan relations that will allow Occidental to return to Libya. Occidental has been very successful in the Middle East and North Africa, where we have found and developed large volumes of commercial oil and gas reserves."
In December, Libya said it had abandoned efforts to acquire nuclear, chemical, and biological weapons. US President George W. Bush last month said US oil firms would be allowed to begin negotiating for their return to Libya. Earlier this year, the White House told the US Congress that an existing law designed to discourage non-US companies from investing in either Iran or Libya should continue to give Bush wide discretion on when or if sanctions are appropriate (OGJ Online, Feb. 18, 2004). Congress reauthorized ILSA (Iran Libya Sanctions Act) in 2001. The legislation currently sunsets in August 2006. Some in Congress want to repeal the law, while others want to strengthen it (OGJ Online, Oct. 22, 2003).