Libya: German oil company remains defiant over US sanction threat
Berlin, May 14, IRNA -- German chemical conglomerate BASF stressed that its subsidiary oil company Wintershall would not pull out from talks with the Libyan government to acquire huge oil deposits, in spite of US sanction threats, the Germany news agency DPA said here Monday.
"We will not pull out, as we do not see a reason for it," said a spokesman on Monday at the BASF company headquarters in the southwest German town of Ludwigshafen.
He also expressed "surprise" over sanction threats by two influential US senators in a recent meeting with visiting German Foreign Minister Joschka Fischer, warning the German firm of retaliatory actions under the Iran Libya Sanctions Act (ILSA).
Wintershall is currently in talks with Libya about properties of the Oasis Partners, a US consortium involving Marathon, Conoco and Ameralda Hess.
The holdings, potentially worth million of dollars, have not been in operation since a 1986 executive order by then-President Ronald Reagan banning US firms from doing business in Libya. Germany along with other European countries, have reiterated on several occasions that they do not recognize ILSA.
BASF has an annual turnover of 1.6 billion dollars in North America, however Wintershall has very little business in the United States.
If Washington decides to enact sanctions against the company, Berlin could opt to lodge a complaint with the World Trade Organization(WTO).
The US oil industry is lobbying Congress and the White House to not renew ILSA which will expire in August of this year.
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