Three US oil majors are set to resume oil and gas production in Libya after a two-decade absence from a country that was once seen as a pariah state but is now flush with Western investment.

ConocoPhillips, Marathon Oil and Amerada Hess said they had signed an agreement to return to their former energy fields in Libya, after abandoning the country when US sanctions were imposed in 1986.
Libyan National Oil Corporation will hold 59.16 percent of a joint venture in Libya's Waha concessions, Conoco-Phillips and Marathon Oil will each hold 16.33 per cent, and Amerada Hess will hold 8.16 per cent.
“We are pleased to be resuming our long and productive partnership with the people and the state of Libya in this strategic asset,” said Jim Mulva, chief executive of ConocoPhillips, the biggest of the three firms.
“This agreement provides a strong basis for us to invest in our aligned goals for increased reserves and production, and in the training and development of our Libyan workforce,' he said in a statement.
The concessions produce about 350,000 barrels of oil per day and encompass almost 13 million acres (5.3 million hectares) in the Sirte Basin, which the US companies said “contains sizeable undeveloped oil and gas resources”.
The trio agreed to pay $1.3 billion to restart their participation. The payment extends the terms of the concessions for 25 years, to 2031-2034. They also paid $530 million to regain access to frozen assets in Libya.
ConocoPhillips said it expected to add about 45,000 net barrels of oil per day (bpd) to its global production after re-entering Libya. Marathon targeted an extra 40,000-45,000 bpd, and Amerada Hess about 20,000-25,000.
The deal triggered a modest year-end rally for all three companies.
In October, Libya awarded 44 oil exploration permits to predominantly Asian and European companies after a first batch was awarded earlier this year mainly to US firms.
US oil giant Exxon Mobil earlier this month announced the signing of an agreement with Libya to explore offshore energy deposits in an area comprising 2.5 million acres.
Libya has proven oil reserves of 36 billion barrels and Kadhafi's government says that figure could be as high as 100 billion.
It has vowed to invest $30 billionover the next 10 years to increase oil production.
“This is a historic day for Marathon and our partners,” Marathon Oil chief executive Clarence Cazalot said.