Maureen Lorenzetti
Washington Editor
WASHINGTON, DC, Apr. 28 -- As had been widely anticipated by industry, US President George W. Bush Apr. 23 removed most—although not all—economic sanctions against Libya. Bush cited the country's efforts against terrorism and rejection of weapons of mass destruction as factors in his decision to lift the 18-year-old penalties.
The action means that US-based oil companies may sooner resume or expand investments in Libya (OGJ Online, Apr. 22, 2004).
Getting to the negotiation table is one thing, but cutting a deal is quite another. US companies with existing interests in Libya are telling Wall Street analysts that preliminary negotiations have been fruitful but nothing has been settled yet despite the improved political climate.
Those companies include Occidental Petroleum Corp., Amerada Hess Corp., Marathon Oil Co., and Conoco Inc. (now ConocoPhillips). Representatives from each company and other US-based concerns such as ChevronTexaco Corp. are expected to travel to Libya as soon as next month to meet with high-level Libyan officials. Meanwhile, companies may buy and sell Libyan oil.
Some sanctions retained
The White House preserved some sanctions. US airlines for example are not allowed to offer direct air service to Libya, and millions of dollars of Libyan assets remain frozen in US banks
The country also is still on the US's list of state sponsors of terrorism because US officials still have reservations about the government's possible ties with some extremist groups. Countries that are on the list are not eligible for US economic aid; similarly, US companies may not get federally backed loan guarantees for business deals they may want to conduct with Libya.
