British Firms Eye Libya as Tripoli Warms to West
By Michael Georgy
LONDON, Sept 22 (Reuters) - Long term prospects not quick deals will be the aim of over 30 British businessmen on an upcoming trade mission to Libya, one of the world's most unpredictable countries.
The trip comes as Libyan leader Muammar Gaddafi is busy trying to project a polished image to Western countries which have long accused him of sponsoring international terrorism.
Libya now seems more interested in luring foreign cash than fierce verbal tirades against the West - good news for oil executives, long frustrated by United Nations sanctions.
They hope to convince the OPEC producer to make investment terms sweeter to lure foreign cash and capture revenues while rocketing oil prices are delivering a windfall.
The Libyan British Trade and Investment Mission will visit Libya from September 30 to October 3, the second such trip since the United Nations suspended sanctions on the North African country last year.
The companies, which include British Gas International, Ford Motor Co's UK unit Land Rover, Shell, Bass Hotels and Resorts and Biolab Water Additives Corp, will explore for investment opportunities in Libya.
"People obviously have been cut off from trading in Libya because of sanctions which have now been suspended, thank goodness, and they are keen to find out the opportunties," Jeremy Hanley, former British Minister of State for Foreign Affairs, told Reuters at a function to prepare for the trip.
He is now chairman of International Trade and Investment Missions Limited, which is organising the mission.
Trade mission officials said they were encourged by developments on the ground in Libya, where Gaddafi wants to trim bureaucracy and give more power to local government.
LOCKERBIE FADES
Libya paved the way for fresh investment when it handed over for trial in the Netherlands two suspected Libyan agents accused of involvement in the 1988 bombing of a U.S. airliner over the Scottish village of Lockerbie.
The U.N. suspended sanctions and a European embargo has also been lifted. The United States has maintained sanctions.
Britain and Libya re-established diplomatic ties last July after Tripoli agreed to pay compensation for the fatal shooting of a London policewoman and handed over the Lockerbie suspects.
Delegates to the Libya trip, which will take place while the Libyan Lockerbie suspects are on trial in the Netherlands for the bombing of Pan Am flight 103 which killed 270 people, said they were encouraged by Tripoli's cooperation in the case.
"In many areas the political difficulties of the past, we now have an understanding that is allowing the business communities to work together," Hanley said.
OIL OPENINGS
Libya's oil industry could offer some of the biggest opportunities for British and other foreign companies.
While one oil executive described the country as a sleeping giant in terms of exploration opportunities, businessmen said they would seek relaxed investment terms.
"The key message to the Libyans on the oil front is to make the terms sufficiently attractive so that they encourage investment," said Steve Lowden, director of Commericial and Business Development at Premier Oil PLC.
While British businessmen were upbeat on Libya's potential, others were doubtful that Gaddafi would swiftly ease red tape and relinquish enough control of the economy.
"They have been making promises for 20 years," an Arab businessman with interests in Libya told an associate at the function. |
