Italy's ENI leads race for Libya oil deals
TRIPOLI, Libya, Sept. 7 (UPI) -- Italy's top oil company has signed a deal with Libya's rebel government to take the lead in a race by international oil companies to secure access to the country's oil and natural gas reserves and contracts worth billions of dollars.
The prospects for China, which has been snapping up energy deals across Africa and the Middle East to fuel its burgeoning economy, have been severely dented by disclosures it offered to sell weapons worth $200 million to Moammar Gadhafi's regime to avert his downfall.
Libya has Africa's largest known oil reserves, totaling 46.4 billion barrels, plus natural gas reserves of 55 trillion cubic feet.
China is the third largest importer of Libyan crude. Libyan oil production was reduced and eventually cut altogether during the six-month civil war.
"We don't have a problem with Western countries like the Italians, French and U.K. companies," declared Abdeljalil Mayouf of the rebel oil firm Agoco. "But we may have some political issues with Russia, China and Brazil."