Libya nationalises U.S. oil company

Press, Volume CXIII, Issue 33250, 13 June 1973, Page 21

Libya nationalises U.S. oil company

r.V.Z.P .A.-Reuter—Copyrijht) TRIPOLI. June 12. Colonel Muammar Gadaffi has announced nationalisation of the Bunker Hunt Oil Company in Libya, say ing that the time had come to threaten American interests in the Arab region.

Addressing a mass rally to mark the third anniversary of the [United States withdrawal from Wheelus [Air Base, the Libyan leader said that the nationalisation was an act of sovereignty and that the company lacked the legal status to exploit oil. The take-over decision gives Libya full control of the rich Sareer oilfield, which had been shared by Bunker Hunt and British Petroleum (BP). At the end of 1971. the B.P. share was annexed by the revolutionary' Libyan Government after it accused Britain of collusion in the

5 seizure by Iran of three ( islands in the gulf. J Libya had demanded joint • control of Nelson Bunker •j Hunt’s holdings in Libya, but y negotiations on this broke I down last December. The ,[Libyans then called for a 100 ' per cent interest in oil com•ipanies on their territory. I ’ Three other American comI panies. Oasis. Amoseas and . Occidental, are believed to be [negotiating on the latter demand. [ Cheered by a huge crowd, 1 [Colonel Gadaffi delivered a I [bitter attack on foreign oil . [ firms and on the United . [States. . ] "It is time for the Arab [ people to confront America.” I he said. “It is time to [threaten American interests in the area, whatever the ‘ price . . .” He added: “The United [States, which thinks that she ’’is controlling the world ■ | through her monopolistic oil and naval fleets.

needs a severe slap in the face in the Arab region." He said that the time had also come to put things right with the oil firms, which he declared reflected American ‘ dominant policy." Colonel Gadafti said last month that if the Middle East crisis deteriorated further, oil would be used as a weapon by the Arabs Colonel Gadaffi added: “America, which is being punished, defeated and kicked ever) where, has not yet had its final lesson, because we are still witnessing its complete bias in favour of Israel. “The time might come when there will be a real confrontation with oil companies and the entire American imperialism.” In Libya, the Bunker Hunt Company is domiciled in Benghazi. Company officials declined to give any details concerning the nationalisation, including the firm’s concessions and assets.

A month ago, Libya was reported to have agreed to refer its dispute with Bunker Hunt to arbitration. The company appointed an arbitrator after the December breakdown in the talks, but Libya did not respond until recently, when it named its United Nations Ambassador. Mr Kamal Maghur, as representative.

I The Libyan authorities imposed an embargo last May 24 on Bunker Hunt’s production from the Sareer field. It had imposed a similar ban during the second half of December on the grounds that the company had been overproducing in its half share lof the field. ! In his warning last month [that the Arabs might use oil as “the ultimate weapon" in the Middle East conflict. Colonel Gadaffi told a press conference: “If the Arab Governments do not do this the Arab peoples will take the initiative and do it. “All estimates foresee a growing need for oil in the consuming countries, and oil will not lose importance in the future. The world — and above all the United States—needs more oil every year." he added. Colonel Gadaffi. at the press conference, also accused the Oasis group — owned by Continental Oil Marathon. Shell and Amer-ada-Hess — of employing Israeli nationals and importing I Israeli products into Libya. I “The behaviour of this [American company is serious and we will put an end to it.” he declared.