RWE Chairman Sees No Reason to Drop Libya Plans

RWE sees no reason to changes its plans to explore and drill for oil and gas in Libya, despite US reservations regarding the project, chairman Harry Roels said Tuesday. "We see no reason to pull out of our project," Roels told the group's half-year earnings news conference.

"Naturally, there have been a few questions. But we're not breaking any law," Roels said.

Under a United States law, the Iran Libya Sanctions Act, foreign companies can be sanctioned if they invest more than 20 million dollars (17.7 million euros) annually in the oil and gas sectors of Libya or Iran.

In this context, the US authorities have expressed concern about a joint exploration and drilling venture between RWE's oil unit RWE DEA and the Libyan national company NOC.

RWE argues that the cooperation represents an investment of 59 million dollars (52 million euros) over a period of five years and is therefore well below that level.