Latest Channel 4 News:
Row over Malaysian state's coins
'Four shot at abandoned mine shaft'
Rain fails to stop Moscow wildfires
Cancer blow for identical twins
Need for Afghan progress 'signs'

Megrahi release: a business choice?

By Channel 4 News

Updated on 24 August 2009

Many believe Megrahi's release had less to do with the due process of Scottish law than potential trade and energy deals with Libya worth tens of millions of pounds. John Sparks reports.

Petrol

Major British companies like BP, along with a number of former government officials are among those chasing business opportunities in Libya.

Channel 4 News has been looking into what is at stake.

The analysts call it realpolitik - doing practical deals, the art of give and take.

The UK and Libya have been doing this for about a decade but how influential are commercial considerations and where does business fit in this complex mix?

Libya is an exciting new destination for British business but did that excitement influence the decision to release Megrahi, the man convicted of the Lockerbie bombing?

The Scottish and British governments say absolutely not but Megrahi's future and new business opportunity has always been part of bi-lateral negotiations.

In 2007 Colonel Gaddafi's regime sought to re-enter into the international community after three decades of sanctions and the then British prime minister offered a hand. They signed a number of agreements, including a prisoner transfer deal, so was this a so-called package deal?

The Libyans wanted Megrahi to return home and a memorandum on prisoner transfers was drawn up and agreed to as part of the deal in the desert but it also served to endanger the future of British business interests in Libya.

Libyan and British companies have already made significant investments in Libya. BP signed an exploration deal worth $900m two years ago - its largest exploration commitment in the world.

Shell are exploring for gas in Libya, as are BG. But Libya has many suitors and the competition is growing fast. The US oil giant ExxonMobil is now investing $97m in exploration. The contracts are signed in partnership with Libya's national oil company, who are currently working with Russia's Gazprom, Germany's RWE and Japanese Nippon Oil.

Analysts call Libya the most exciting investment opportunity in the world with $50bn of government contracts on offer in the next three years, yet it is notoriously bureaucratic and controlled by one family. British businesses depend on the UK government to help them compete.

The relationship between UK plc and the government is close because in Libya it has to be - businesses will certainly be glad that Megrahi was released on compassionate grounds but were they lobbying for it too?


The leader of the Liberal Democrats Nick Clegg speaks to Krishnan Guru-Murthy.


Sir Alan Munro, former British Ambassador of Saudi Arabia speaks to Krishnan Guru-Murthy.

Send this article by email

More on this story

Channel 4 is not responsible for the content of external websites.


Watch the Latest Channel 4 News

Watch Channel 4 News when you want

Latest Business & Money news

More News blogs

View RSS feed

Faisal Islam on Twitter

How to tweet

How and why to follow the Channel 4 News family on Twitter.

Most watched

image

Find out which reports and videos are getting people clicking online.




Channel 4 © 2010. Channel 4 is not responsible for the content of external websites.