Last Updated: Thu Dec 29, 2011 22:56 pm (KSA) 19:56 pm (GMT)

Libya to review deals with Italian oil major ENI

Signboards display fuel prices at an ENI petrol station in Rome. (Reuters)
Signboards display fuel prices at an ENI petrol station in Rome. (Reuters)

Libya’s government told its biggest oil investor, Italy’s Eni, it would review deals signed during former leader Muammar Qaddafi’s rule and added the Italian major must help rebuild cities damaged by a civil war.

Eni said the government would suspend only social sustainability program agreements and not its massive oil operations, which represent 10 percent of Libya's total oil output and 18 percent of its gas production.

“Foreign companies working in Libya should prove to the Libyans that they were partners with Libya and not with Gaddafi and his regime,” interim prime minister Abdul Rahim al-Keib said in a statement.

“Eni has to prove that (partnership with Libyan people) through playing a distinguished role in reconstruction of cities that were destroyed by Qaddafi’s forces.”

The statement said Keib expressed his regret over what he said were the negative positions of most oil companies operating in Libya during the revolt against Qaddafi.

The statement said that ENI’s chief executive Paolo Scaroni “expressed his company’s desire to resume its activity in Libya and complete projects tasked to it under two agreements signed in 2006 and 2010.”

It also quoted Scaroni as saying “the company’s activity would go back to normal by next June.”

A spokeswoman for Eni said a contract review would not affect oil operations.

“The review regards two social sustainability agreements of 2006 and 2010, not oil,” the spokeswoman said.

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