Two Houston companies want U.S. sanctions against Libya lifted

Executives of two Texas oil companies are already making plans to take advantage of a possible end to an embargo with Libya.

Representatives of ConocoPhillips and Marathon Oil Corp. haven’t made a trip to Libya since 1986, when President Reagan imposed sanctions on Libya because of terrorist activity.

But company officials say that could change. The Bush administration Dec. 22 dangled the prospect of improved economic relations with Libya. The country agreed Dec. 19 to dispose of its weapons of mass destruction and open the door for inspections.

“The events that took place on Friday are very encouraging, but we are still held to U.S. sanctions,” Susan Richardson, spokeswoman for Marathon Oil, said in Dec. 23 editions of the Houston Chronicle.

Before the sanctions ConocoPhillips, Marathon Oil and New York City-based Amerada Hess, part of the Oasis Group, produced about 850,000 barrels of oil a day in Libya.

Fadel Gheit, senior energy analyst with Oppenheimer & Co., in New York City said without the sanctions Libya could produce up to 3 million barrels per day.

“That would make Libya among the largest oil-exporting countries,” Gheit said.

He said President Bush could lift sanctions in early 2004.

Richard Boucher, U.S. State Department spokesman, said the United States is looking at Libya’s changes.

“As Libya’s policy changes, Libya’s behavior changes, Libya’s circumstances change, we’ll be willing to look at those things,” Boucher said. “And at some point, we may be in a position to make some changes.”

The oil companies are eager to start doing business with Libya because concessions they hold with the country expire in 2005 and Libya could transfer the leases to Europe.

The United Nations also sanctioned Libya, but the ban was lifted when Libya accepted responsibility for a 1988 bombing of a Pan Am jet over Lockerbie, Scotland.