Monday, Mar 08, 2004
Influx of U.S. oil majors into Libya likely
By Atul Aneja
MANAMA, MARCH 7 . As Libya goes into an overdrive to shed weapons of mass destruction, it is setting the stage for a major influx of American oil companies on its soil. Libya's progressive elimination of infrastructure for building atomic weapons and declaration of its chemical weapon stockpiles has opened the door for its re-engagement with the United States.
The Libyans have already taken responsibility for the Lockerbie airline bombing in 1986 and committed compensation for the families of the victims. Before the U.S. oil companies arrive in droves, Libya has named Fethi Omar bin Chetwane, oil expert, as the new Energy Minister. The Finance Minister has also been replaced. But the Prime Minister, Shokri Ghanem, and the Foreign Minister, Abdulrahman Shalgam, who has been the public face that has given expression to Libya's dramatic turnaround, have been retained.
By changing its political course, the Libyans, analysts say, are following a script that has been carefully written in Washington and London. But according to some commentators, the pledge to eliminate mass destruction weapons was not so much the result of Anglo-American pressure but the result of a deal that both London and Washington were keen to strike. In fact, Libyans, it has been argued, were playing on Washington's fears that over the years, its hold over the energy reserves of West Asia was gradually slipping.
The raging Iraqi resistance, and the growing U.S. difficulties in its relationship with Saudi Arabia had only deepened American anxieties to retain an assured access to oil. The Libyans, therefore, took advantage of the American desperation to seek greater access to West Asia's oil fields and broke out of its isolation.
Commenting on the Libya-U.S. engagement, Youssef M. Ibrahimi, Managing Director of the Dubai based Strategic Energy Investment Group was quoted as saying: "America is running out of places where it has an assured supply of oil. The Saudis are growing distant. Iran is out of reach. The U.S. is having trouble stabilising Iraq, let alone returning its oil production to pre-war levels. In addition, Saudi Arabia is turning away from the U.S. in the aftermath of the Sept. 11, 2001, attacks, prompting Organisaton of Petroleum Exporting Countries (OPEC) to further cut back oil production, raising prices. Venezuela is hostile to the U.S., and Iran, another major oil producer, is in no mood to collaborate." Not surprisingly, soon after the U.S. lifted a travel ban last month, some of the major oil companies that were once doing business in Libya, before sanctions were imposed in 1986, expressed great interest to get back. These companies include the Marathon Oil Co., Amerada Hess, ConocoPhillips and Occidental Petroleum. These firms produced more than a million barrels a day in Libya before 1986. As it prepares for the arrival of the oil giants, the Libyans are going full steam ahead to eliminate equipment to manufacture mass destruction weapons. A ship carrying 500 metric tons of equipment left Libya on Saturday for the U.S. The cargo, according to a White House spokesman, included centrifuge parts used to enrich uranium and all equipment from Libya's former uranium conversion facility.
Copyright © 2004, The Hindu.