The ratification of BP’s $900m gas exploration contract with National Oil Corporation (NOC) returns British relations with Libya to an even keel. As African Energy exclusively reported in November, Libyan Leader Muammar Qadhafi halted the deal to pressure the UK into allowing Lockerbie bomber Abdelbaset Ali Mohammed Al-Megrahi to be repatriated (AE 126/1). He approved BP’s contract after Justice Minister Jack Straw confirmed that Megrahi would not be excluded from a general accord on prisoner repatriation agreed with Libya last year. Megrahi’s conviction is being reviewed by Scottish appeal judges. If Libya asks for his return, Scottish Executive ministers will have the final say. An informed source in Tripoli says the government is building a house for Megrahi, anticipating his return.
A senior British source told African Energy it had been “a pleasant surprise when the green light was given”. But one informed observer noted that the spat had allowed French President Nicolas Sarkozy to capture the advantage won by the UK in assisting Libya’s diplomatic rehabilitation in 2003. “All the capital gained has gone with the wind. If the British hadn’t signed now they would have been left behind,” he said – and other possible contracts, including arms deals, had also been jeopardised.
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