Ronald Reagan pulled American oil firms out of Libya as long ago as 1986. ILSA's initial five year term expires in August 2001 and frustrated U.S firms, confident the law will not be renewed, are targeting its demise as the best chance yet of winning government support for easing their own shackles. White House candidate George W. Bush has powerful oil industry links while Cheney, former head of oil services giant Halliburton, said before being picked as Bush's partner that the U.S. should ease relations with Iran by renewing economic ties. U.S. majors Exxon Mobil, Chevron and Texaco were all investors in Iran before the oil sector was nationalised in the wake of the 1979 revolution. In Iran, we can do in-country visits, we can talk to people, we can look at data.
Firms believe they have a platform to make inroads as soon as the executive order is lifted.
Things have accelerated recently because they believe U.S. sanctions will be lifted in August 2001 when ILSA expires. Firms admit efforts to ease sanctions could quickly blow off course while the U.S holds to long-standing accusations that Iran supports terrorism and undermines the Middle East peace process. Progress on Libya could be thwarted if trouble flares from the trial of two Libyans accused of the 1988 Lockerbie airliner bombing, government officials add. Yet signs of an improved climate came in in March when Iran lifted sanctions on key non-oil Iranian exports following a win by reformers in Iran's parliamentary elections. The dying days of the Clinton administration late this year could be a window for another move.