Oil groups face Libya ultimatum

Libya will require foreign companies to appoint Libyan chief executives to their joint ventures in a move that will be seen as further step in the creeping nationalisation of the country's oil industry.

A government directive instructs companies with foreign participation to appoint Libyan heads, a foreign oil executive and a western diplomat told the Financial Times. All foreign companies, including those which are involved in oil production, operate as joint ventures.

The move will raise concerns among foreign investors. "This is not good for the Libyan economy," said the western executive. "Companies which are here will stay, but if you are still deciding, you will think twice."