Bush to end Libya sanctions "in the next 30 days or 60 days"?
Conoco chief optimistic Bush to end Libya sanctions
By Tom Ashby
JOSE, Venezuela, Feb 13 (Reuters) - Conoco Inc. Chairman Archie Dunham said Tuesday he was "very optimistic" U.S. President George W. Bush will lift long-standing sanctions against Libya, allowing U.S. oil firms to return to the energy-rich nation.
Dunham, also chief executive of the Houston oil firm, expressed hope that the arrival of former Texas oilmen Bush and Dick Cheney to the White House could pave the way for ending the 15-year-old sanctions against Libya.
"I think this administration is more willing to re-look at sanctions policy, which has been a total failure," Dunham told reporters on a tour of a refinery installation in eastern Venezuela.
"I am very optimistic that changes will be made in U.S. policy with the new administration. I can't say specifically if that is going to happen in the next 30 days or 60 days," he said.
U.S. oil firms were forced to abandon lucrative operations in OPEC-member Libya by former President Ronald Reagan's 1986 executive order.
Dunham, head of the No. 4 U.S. oil company, said he was hopeful an agreement could be reached following last month's conviction of a Libyan intelligence agent for the Lockerbie airliner bombing 12 years ago, which killed 270 people.
The new Republican U.S. administration, which took office in late January, is said to be far less keen on economic sanction which harm U.S. business interests overseas than its Democrat predecessor.
U.S. oil firms Conoco, Marathon, Amerada Hess and Occidental traveled to Libya in December, under a special exemption to review investment opportunities.
The firms are keen to regain ground lost in the North African country to European energy rivals such as TotalFinaElf, Repsol and ENI.
The Iran-Libya Sanctions Act (ILSA) -- threatening sanctions against foreign energy firms investing in the two countries - is due to expire in August.
Washington's concern about low world oil supplies will strengthen the case for allowing its energy companies to resume drilling in Libya, as well as complementing Tripoli's efforts to attract foreign investment and gain diplomatic credibility.
"Secretary (of State Colin) Powell is going to the Middle East, and I think the Middle East and Africa will be two regions of major focus for the Bush administration, and they were not for the Clinton administration," Dunham said.
"I think you are going to see significantly more progress in that part of the world as a consequence of the focus that is going to come from our State Department," he said.
Whatever the tendency in the new administration, Bush said publicly in January he will maintain pressure on Tripoli after Libyan intelligence agent Abdel Basset al-Megrahi was jailed for life for the Lockerbie bombing.
Foreign policy watchers said it could be months before the domestic U.S. political climate could begin to be right for lifting restrictions.
The debate on lifting sanctions may be swayed by whether Libya can reach a compensation deal with families of the victims of the Lockerbie airliner bombing.
Secretary of State Powell made it clear even before the last month's guilty verdict that Libya would also have to comply with U.N. resolutions condemning terrorism before sanctions could be lifted.
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