WASHINGTON, Aug 6: The United States has warned German utility giant RWE that it may face US sanctions for a deal to explore for oil and natural gas in Libya, the State Department said on Wednesday.

Deputy spokesman Philip Reeker said Washington was examining the nature of a 64-million-dollar contract that RWE has signed with Libya to determine whether sanctions would be imposed under the 1996 Iran-Libya Sanctions Act (ILSA).

“United States policy has long been opposed to investment in the petroleum sector of Libya,” he said.

“Reports such as those about a recent agreement by the firm RWE to explore for oil and gas in Libya are of concern to us,” Reeker told reporters.—AFP