Libya bars Italy from oil sector

July 14, 2011 | Africa, Government & Regulations

Muammar_Gaddafi

Libya’s prime minister says the government has barred Italy from participating in his country’s oil sector, citing Rome’s role in the NATO airstrikes on the North African nation.

Al-Baghdadi al-Mahmoudi, however, left the door open for other countries to continue their operations inLibya’s vital oil sector as long as they “reviewed” their participation in the alliance’s airstrikes, which are targeting forces loyal to Libyan leader Moammar Gadhafi.

Al-Mahmoudi told reporters Thursday that Italy was barred specifically because it had signed a friendship agreement with his country that prohibits acts of aggression. The move raises serious questions about investments by Italian oil giant ENI, which was heavily invested in Libya.

The OPEC member’s oil sector is under international sanctions.